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Decoupling From EURUSD... For Now

BUNDS

Bunds fail to sustain the break of resistance at 138.52, reversing earlier gains and decoupling from the stronger EUR (hitting parity w USD for first time since mid-Sep). (We noted yesterday that the correlation between the USD and Bundsis as high as it's ever been).

  • The German curve is bear flattening a little more as Schatz yields hit session highs, with ECB terminal rate pricing marginally higher (2.85% peak in Jul 2023, up 1bp).

Source: BBG, MNI

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