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EGBs are testing new lows

BONDS
  • Not a Tech area, but BTP just found some support down to its opening gap of 118.86, testing again now..
  • Not yet seen any obvious hedging flow ahead of the heavy Italian supply.
  • Further moves lower for IKH4 would open to 118.31 and 118.10.
  • For the German curve, the Schatz futures underperforms ahead of the heavy 2yr EU5bn Auction (equates to 53.9k Schatz).
  • For Bund, initial support is still further out, towards 134.66 initially.

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