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Coiling Ahead Of Event Risk

BUNDS

Bund futures sit close to 20 ticks off worst levels of the day, last showing -20 or so, while the broader German cash curve sees some light bear flattening as the major benchmarks run 3-4bp cheaper. News flow has been light since our previous update. Tepid reception at the auction representing the opening of the new 7-Year line wouldn’t have done the move any harm. Technically, futures consolidate between the immediate horizontal lines in the sand, off last week’s peak. The recent retracement appears to be a correction and short-term trend signals highlight a bull cycle.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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