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Core Govies test Yields resistance

BUNDS
  • Core Govies futures remain under pressure, and focus in terms of Technical will be turning back to Yields, with Bund nearing the next area of interest at 2.392% (gap), equated to circa 132.42 Yesterday, and given that the contract is printing a fresh low on the cash open, the Yield shouldn't be too far when it is quoted.
  • It is a similar price action for TYM4 in the US, with the Yield testing the 200d MA, was at 4.1996% Yesterday and 4.2021% today, printed a 4.2017% high overnight.
  • In terms of pure Technical in Bund, some will look at 132.36 Low Mar 5, but better will be seen towards the 132.00 figure.
  • Today sees, Spain final CPI, US PPI, Retail sales and IJC.
  • SPEAKERS: ECB de Cos (x2), Schnabel, Knot, Guindos, Stournaras.

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