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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

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Another big session in terms of volumes for Bonds.

  • Bund and EGBs have extended lower this morning after the Hawkish BoE stunned the markets yesterday.
  • Bund is off the low, after testing initial support noted at 170.20 (did print 170.17 low).
  • A clear break below 170.00,would open to next yield level seen at -0.178%, which today, reference 170.26, would equate to 169.50.
  • Gilts were initially wider against Germany but are back to flat at the time of typing.
  • The spread traded at 117.5bps in early trading, to the widest levels since 2019.
  • Next resistance is at that 2019 peak 121.0123, which is also the widest level since June 2016.
  • The spread is now at 116.3
  • US treasuries are also down but are better bid on the margin, bringing the Tnote/Bund spread 3.5bps tighter on he session.
  • Looking ahead, we have no real market moving data, and focus turns on speakers, including ECB Elderson, Lane, Fed Mester, Powell, Clarida, Bowman, George, Bostic, BoE Tenreyro
  • After markets we get ratings from Fitch on Belgium, S&P on Germany, DBRS on Finland