Free Trial

EGBS: Bunds Off Overnight Lows As Participants Weigh Biden Withdrawal, PBOC Cut

EGBS

Bund futures are +4 at 132.14, 11 ticks off overnight lows and comfortably within Friday’s range as European market participants assess Biden’s Presidential Race withdrawal and the PBOC’s surprise rate cut.

  • Both factors have seemingly provided modest tailwinds to core FI in the immediate term.
  • First resistance in Bunds is the July 17 high at 132.66, while the 50-day EMA at 131.65 provides initial support.
  • Democrat chances (per betting markets) of winning the election have increased a touch overnight, potentially calling into question trades centred on Trump reflation and debt dynamics. 
  • However, this will need to be weighed against renewed uncertainty around the election outcome.
  • E2.0-2.5bln of 10/30-year OLO supply from Belgium is due at 1100BST/1200CET.
  • Today’s regional calendar includes Q1 Eurozone debt/deficit data, while primary macro focus is on Wednesday’s flash PMIs.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.