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EGBS: Bund Futures Just Above the 20-EMA

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

Bund futures trade just above prior support at the 20-day EMA, currently +9 today at 134.41. Wednesday’s high at 134.86 provides the first resistance, shielding the Sep 11 high at 135.49 and the bull trigger at 135.66. 

  • BoJ Governor Ueda’s cautious comments (with respect to the bank’s hiking cycle) likely helped Bunds away from intraday lows this morning, while less hawkish than usual remarks from BoE’s Mann had little impact.
  • Meanwhile, ECB’s de Guindos and Rehn aligned with the status quo of a “data-dependent and meeting-by-meeting” approach.
  • The German cash curve has bull flattened, with 2s10s -0.6bps today at -3.3bps.
  • The pullback in equities prompted 10-year peripheral spreads to move away from opening tights, with the BTP/Bund spread now 0.5bps wider at 136bps.
  • Several ratings announcements are due after market, while any updates around French PM Barnier’s cabinet formation will also be of interest. The 10-year OAT/Bund spread has drifted to ~74bps this week, its widest since mid-August. 
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Bund futures trade just above prior support at the 20-day EMA, currently +9 today at 134.41. Wednesday’s high at 134.86 provides the first resistance, shielding the Sep 11 high at 135.49 and the bull trigger at 135.66. 

  • BoJ Governor Ueda’s cautious comments (with respect to the bank’s hiking cycle) likely helped Bunds away from intraday lows this morning, while less hawkish than usual remarks from BoE’s Mann had little impact.
  • Meanwhile, ECB’s de Guindos and Rehn aligned with the status quo of a “data-dependent and meeting-by-meeting” approach.
  • The German cash curve has bull flattened, with 2s10s -0.6bps today at -3.3bps.
  • The pullback in equities prompted 10-year peripheral spreads to move away from opening tights, with the BTP/Bund spread now 0.5bps wider at 136bps.
  • Several ratings announcements are due after market, while any updates around French PM Barnier’s cabinet formation will also be of interest. The 10-year OAT/Bund spread has drifted to ~74bps this week, its widest since mid-August.