June 05, 2024 08:34 GMT
2.50% And Uptrend Channel Intact In 10-Year Yields
BUNDS
The pullback from yesterday’s lows in German 10-Year yields leaves both the 2.50% mark and the uptrend channel in place since late December intact.
- Tomorrow’s ECB decision will provide a key input for near-term direction,
- With a June cut heavily telegraphed, markets will instead be focused on any new policy signals provided in the communique.
- MNI’s baseline scenario sees President Lagarde steering clear of providing any strong policy signals for the July or September meetings, but indicating a willingness to ease further, economic conditions permitting.
- Our full preview of that event is available here.
Fig. 1: German 10-Year Yield (%)
Source: MNI - Market News/Bloomberg
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