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EGBS: Bund Futures Close Overnight Gap Lower, First Resistance At 132.08

EGBS

Bund futures have rallied some ~60 ticks over the past 90 mins to close the overnight gap lower, currently +21 at 131.94.

  • Initial resistance remains at the July 11 high (132.08).
  • Volume has picked up since the cash equity open.
  • A downtick in oil and weaker European equity markets will be helping the bid.
  • The German cash curve has bull steepened a little, although both 2s10s and 5s30s remain short of early-July highs.
  • 10-year peripheral spreads to Bunds are biased slightly wider, with the move lower in equities noted.

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