Trial now

Key Resistance Is At 1.2203


Still Range-Bound


Decent Action on Narrow Range Ahead Wed's FOMC

EGB SUMMARY: Bunds have given back some of yesterday's gains this morning. This
is despite an early 27k buyer of front month euribor contracts that briefly
caused a spike in prices across the entire yield curve. 
- That Euribor purchase was swiftly met with some more moderately-sized selling.
- The 10Y Bund yield is 1.1bp higher so far. There was initially some extra
pressure on the Dutch curve because of news that the Dutch-based telecoms giant
Altice is making a bid for the American cable operator Charter. The FT reports
that the deal could be worth a mammoth $185bln. However, initial DSL
underperformance has been clawed back.
- Italian debt is also clawing back some of its substantial widening seen
yesterday. The spread is at 156bp today and so has made back roughly half of the
widening seen yesterday morning on the North Korean news.
- The risk-off trade is not dead-and-buried as equity markets remain soft on
Thursday; the eurostoxx is down 0.25%.