A Little Above Fresh Session Lows

Bund futures hit fresh session lows around the German national CPI data, with no meaningful surprises provided vs. levels indicated by the regional CPI prints.

• Hedging surrounding the pricing of various EUR IG deals helps keep the pressure on, with weakness in wider core global FI markets weighing into the CPI release.
• Bund futures probe support at the 1.618 projection of the Mar 8-18-27 price swing (129.26), registering a low of 129.25 thus far, before a recovery to 129.35.
• A move lower would expose the 1.764 projection of the same move (128.88), although some would look to the futures equivalent of the Nov 24 high in 10-Year yields (129.18 today) as a support level.
• German yields are 2.5-6.0bp higher across the curve, bear steepening.
• German 2s10s and 5s30s stick within well-established multi-week ranges.
• Most EGB spreads to Bunds were already off session wides into the release and generally print little changed to a touch tighter on the day.
• STIR pricing colour to follow.