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Bear steepening once again

BUNDS

Bund slowly drifting lower, helps the curve to move bear steeper

  • Volumes have also picked up.
  • Italy outperforms (close to flat on the day), push the BTP/Bund spread under 94bps.
  • in terms of MNI technical, next support is seen further out towards 174.37 Low Dec 2, 2020.
  • Below the latter sees 174.06 2.00 proj of Jan 4 - 12 sell-off from Jan 27 high
  • Worth noting, In yield term, medium term resistance comes at -0.304% next, which would equate today, reference 174.82, to 174.05

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