Bund test through the high of the day, with...>

BUNDS: Bund test through the high of the day, with the contract taking its cue

from the Risk Off tone, following fears of a second Covid-19 wave. Although some

might argue that we never got out of the first one. 

*Technically, since we are looking at testing yields level from the end of may. 

Next psychological level will be at -0.50%, situated today at 176.46 (ref

175.88).

-Our futures tech, sees resistance at 176.06 High Jun 26, then 176.54 76.4%

retrace of the May - Jun sell-off 

**Worth noting a decent amount of supplies this week, should keep upside Bund

limited, towards mid week. 

-Wednesday Germany will tap the 0% Aug-30 bund for E5bn. 

-Thursday: Spain tap the 0.0% Apr-23 bono, 0.0% Jan-25 Bono, 5.90% Jul-26 Obli

and the 1.25% Oct-30 Obli with target volumes TBA. 

-Thursday: France tap the 0.0% Feb-23 OAT, 0.0% Mar-25 OAT, 0.0% Feb-26 OAT

0.75% May-28 OAT for E9.5-11.0bn as well as the new 0.10% Mar-26 OATEi for

E1.5-2.5bn.