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EGBS: Bunds Remain Supported Following US ISM Services

EGBS

Core EGB futures hold near intraday highs following the weaker-than-expected US ISM services reading, buoyed by the rally in Treasuries.

  • Bund futures are +58 at 130.96 though remain well short of Monday’s highs, with the 50-day EMA at 131.69 providing first resistance.
  • ECB implied rates have stuck broadly within this week’s ranges, with OIS now showing 41bps of easing through year-end (vs 39bps pre-ISM).
  • Shorter-end Spanish and longer-end French supply headlines tomorrow’s calendar, with ECB’s June meeting accounts also released.
  • A reminder that tomorrow’s July 4th US holiday will likely limit volumes/liquidity in the European afternoon. UK election voting opens, however minimal market impact is expected.

 

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Core EGB futures hold near intraday highs following the weaker-than-expected US ISM services reading, buoyed by the rally in Treasuries.

  • Bund futures are +58 at 130.96 though remain well short of Monday’s highs, with the 50-day EMA at 131.69 providing first resistance.
  • ECB implied rates have stuck broadly within this week’s ranges, with OIS now showing 41bps of easing through year-end (vs 39bps pre-ISM).
  • Shorter-end Spanish and longer-end French supply headlines tomorrow’s calendar, with ECB’s June meeting accounts also released.
  • A reminder that tomorrow’s July 4th US holiday will likely limit volumes/liquidity in the European afternoon. UK election voting opens, however minimal market impact is expected.

 

Keep reading...Show less