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BTP/Bund has cleared 200bps

BOND SUMMARY
  • Bund is finding more safe haven flow, and through another high in futures.
  • Next area of interest is at 140.35 (1.909% Dec 15th low in Yield), and 140.47 76.4% retracement of the Dec 7 - Mar 9 bear leg (cont).
  • Note that the latter 140.47 also coincide to 1.9% in Yield term today.
  • The Move in Germany has now pushed the BTP/Bund spread clear above 200bps, now at 202.9bps.
  • Some investors will look for some resistance towards 205.bps, ahead of the January high at 210.96bps.

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