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EGBS: 10-Year Bund Yield Hits Lowest Since January

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

10-Year Bund yields hit the lowest level seen since early January (2.063%) as the early rally extends.

  • Further extension of the bond rally would switch focus to 2.00% in German 10s, which protects the January 4 low (1.974%).
  • Bund futures trade as high as 135.61, through next resistance at 135.49. Bulls now target the nearby Aug 5 high/bull trigger (135.66).
  • French paper continues to outperform given expectations for fiscal tightening, OAT/Bunds 3bp narrower at 76bp. A reminder that local media reports have flagged fiscal policy announcements at PM Barnier’s 15:00 CET address.
  • OAT futures are through the Sep 18 high (127.65), with bulls now eying the round number at 128.00, which protects the Sep 17 high (128.14).
  • GGBs still the only notable widener vs. Bunds on the day, that spread is +1.5bp to 99bp.
  • Remainder of the periphery 0.5-1.0bp tighter vs. Bunds.
  • BTP futures take out the Sep 27 high (121.90) and round number resistance at 122.00, with bulls now looking to the 3.00 projection of the Jun 11-Jun 18-July 1 price swing (122.22). 10-Year BTP yields sub 3.40% for the first time since ’22.
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10-Year Bund yields hit the lowest level seen since early January (2.063%) as the early rally extends.

  • Further extension of the bond rally would switch focus to 2.00% in German 10s, which protects the January 4 low (1.974%).
  • Bund futures trade as high as 135.61, through next resistance at 135.49. Bulls now target the nearby Aug 5 high/bull trigger (135.66).
  • French paper continues to outperform given expectations for fiscal tightening, OAT/Bunds 3bp narrower at 76bp. A reminder that local media reports have flagged fiscal policy announcements at PM Barnier’s 15:00 CET address.
  • OAT futures are through the Sep 18 high (127.65), with bulls now eying the round number at 128.00, which protects the Sep 17 high (128.14).
  • GGBs still the only notable widener vs. Bunds on the day, that spread is +1.5bp to 99bp.
  • Remainder of the periphery 0.5-1.0bp tighter vs. Bunds.
  • BTP futures take out the Sep 27 high (121.90) and round number resistance at 122.00, with bulls now looking to the 3.00 projection of the Jun 11-Jun 18-July 1 price swing (122.22). 10-Year BTP yields sub 3.40% for the first time since ’22.