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BONDS: Bonds are edging lower

BONDS
  • Bund is still unwinding some of Yesterday's rally, it has been a gradual downside price action since the Cash open, with the German Supply likely limiting some of the Upside gains in early trade.
  • Small support is seen at 135.53, followed by the 135.12 area.
  • Early volumes are on the better side, but US Treasuries are seeing some dip buying here, TYZ4 in over 6k cumulative.
  • Although the Tnotes/Bund spread is tighter today, by ~1.5bps, it has widened some 20bps from its September low, and investors will look for the next resistance towards 172.00bps, now trading at 168.00bps.
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  • Bund is still unwinding some of Yesterday's rally, it has been a gradual downside price action since the Cash open, with the German Supply likely limiting some of the Upside gains in early trade.
  • Small support is seen at 135.53, followed by the 135.12 area.
  • Early volumes are on the better side, but US Treasuries are seeing some dip buying here, TYZ4 in over 6k cumulative.
  • Although the Tnotes/Bund spread is tighter today, by ~1.5bps, it has widened some 20bps from its September low, and investors will look for the next resistance towards 172.00bps, now trading at 168.00bps.