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EGBS: Recovery In Bund Futures Fades

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

This morning’s recovery in Bund futures has faded, with futures currently -43 ticks at 131.86. Sovereign supply burdens and an uptick in crude oil futures will have limited scope for a more meaningful rally earlier. 

  • The trend conditions in Bunds remains bearish, with resistance at the 20-day EMA (132.49) still intact).
  • The German curve has bear flattened, with 2-year yields 3.5bps higher today.
  • The 10-year OAT/Bund spread is 1.5bps wider at 77bps, after the lower house rejected the 2025 budget bill yesterday afternoon.
  • 3/7/15-year BTP supply was digested smoothly, as was 10-year Bund supply. Portugal also came to the market with 10 and 20-year OTs.
  • ECB’s Nagel warned of the risks that US protectionism poses to Germany growth, while also noting that core inflation pressures remained high.
  • Global focus turns to today’s US inflation report at 1330GMT/1430CET. 
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This morning’s recovery in Bund futures has faded, with futures currently -43 ticks at 131.86. Sovereign supply burdens and an uptick in crude oil futures will have limited scope for a more meaningful rally earlier. 

  • The trend conditions in Bunds remains bearish, with resistance at the 20-day EMA (132.49) still intact).
  • The German curve has bear flattened, with 2-year yields 3.5bps higher today.
  • The 10-year OAT/Bund spread is 1.5bps wider at 77bps, after the lower house rejected the 2025 budget bill yesterday afternoon.
  • 3/7/15-year BTP supply was digested smoothly, as was 10-year Bund supply. Portugal also came to the market with 10 and 20-year OTs.
  • ECB’s Nagel warned of the risks that US protectionism poses to Germany growth, while also noting that core inflation pressures remained high.
  • Global focus turns to today’s US inflation report at 1330GMT/1430CET.