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Decent trading volumes in OATs today

OAT
  • French Auction was on the softer side for the 30yr, but decent for 10 and 20yr, so unrelated to the dip lower in OATs.
  • Some spillovers now going into Bunds, but 170.00 level has so far held.
  • Immediate support in Bunds was at 170.02.
  • OAT are trading more than Bobl,
  • French 10yr yield now target the November high and highest level since May last year at 0.316%.
  • Reference 162.28, this would equate to 161.63.
  • In terms of technical, support comes at 162.13 - 123.6 projection of the Jan 3 - 4 price swing on the 60-min chart.
  • This is followed by 162.00 - 1.382 projection of the Jan 3 - 4 price swing on the 60-min chart / psychological round number.
  • Nonetheless, 161.63 will be the next area to watch

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