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Continued tightening in Tnotes/Bund spread

BONDS
  • Tnotes/Bund spread is seeing continued tightening, with the latest leg lower helped following the Dovish Mr Powell.
  • The spread, similar to what was witnessed yesterday, is at its tightest level in over a Year, since August 2023, and has broken below the 50% retrace of the 2023/2024 range.
  • Next stop would see a test to 155bps, followed by 150bps, and ~144bps.

Chart source: MNI/Bloomberg

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