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Core Moves Away From Lows In Recent Trade, 10s Mostly Tighten Vs. Bunds

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Bund futures base ahead of 130.50 before recovering to the 130.75 area. No obvious headline flow alongside the latest uptick.

  • The contract made a fresh cycle low earlier today (130.52). Next support comes in at the 1.236 projection of the Mar 8-18-27 price swing (130.25). Bulls need to retake the 20-day EMA (131.97) to start turning the technical tide more in their favour.
  • Benchmark German yields are 0.5-4.5bp higher as the curve bear steepens. Bears failed to force 10s sustainably above 2.55% during the earlier sell off, with the November 28 high at 2.569% providing the next point of interest.
  • In terms of the fundamentals, a bounce from lows in crude oil futures would have provided some fresh pressure, although that move has started to reverse as core global FI bases.
  • Elsewhere, the previously flagged syndication announcements provided no real surprises, but helped add weight to a market that is already cautious of this week’s Tsy coupon supply.
  • A lack of fresh worry re: Middle Eastern tensions is also weighing on core global FI markets today.
  • Note that EGBs are generally tighter to 10-Year Bunds, with the periphery outperforming on the back of the sovereign rating matters identified earlier.
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Bund futures base ahead of 130.50 before recovering to the 130.75 area. No obvious headline flow alongside the latest uptick.

  • The contract made a fresh cycle low earlier today (130.52). Next support comes in at the 1.236 projection of the Mar 8-18-27 price swing (130.25). Bulls need to retake the 20-day EMA (131.97) to start turning the technical tide more in their favour.
  • Benchmark German yields are 0.5-4.5bp higher as the curve bear steepens. Bears failed to force 10s sustainably above 2.55% during the earlier sell off, with the November 28 high at 2.569% providing the next point of interest.
  • In terms of the fundamentals, a bounce from lows in crude oil futures would have provided some fresh pressure, although that move has started to reverse as core global FI bases.
  • Elsewhere, the previously flagged syndication announcements provided no real surprises, but helped add weight to a market that is already cautious of this week’s Tsy coupon supply.
  • A lack of fresh worry re: Middle Eastern tensions is also weighing on core global FI markets today.
  • Note that EGBs are generally tighter to 10-Year Bunds, with the periphery outperforming on the back of the sovereign rating matters identified earlier.