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Challenging May 7 resistance

BUNDS
  • Bunds are now challenging the 172.60 level (high of May 7 seen post-US employment report). This is just shy of 172.64, the 61.8% retracement of the Mar 25 - May 19 sell-off.
  • Our technical analyst notes that after breaking through the 172.01 50-day EMA and 172.05 June 4 high, that the next key resistance above here would be the April 23 high of 172.80.
  • Peripheral spreads (with the exception of Greece) have continued to tighten today ahead of tomorrow's ECB meeting.

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