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Bund and gilt futures have edged up, but away from day's highs ahead of US PPI

BONDS
  • Ahead of US PPI at 13:30BST / 14:30CET Bund and gilt futures have been following TY1 futures, which have ground higher for around the past couple of hours (although have come marginally off their high since 13:00BST.
  • Bund futures matched last week's high of 134.84 (around 45 ticks higher on the day). Our technical analyst notes that this is consistent with the level of first resistance with the 136.28 August 5 high at 136.28 the bull trigger.
  • Gilt futures hit a high of 99.96, the highest level since last Tuesday. Our technical analyst notes that scope is seen for a climb towards101.78, a Fibonacci projection point.

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