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Full reversal higher for EGBs, Gilt and Treasuries

BONDS
  • Full reversals for EGBs, and Treasuries, two way flows have mostly dominated the early European session, which saw the 2yr part of the Curve in Germany (Schatz), and Short BTP (BTSU4) weighted by the early supply, although not too heavy, the lack of liquidity/volumes has likely helped push futures lower earlier.
  • BTP still underperforms, while EGB's, Treasuries and Gilt are all testing their respective highs.
  • Main initial resistance in TYU4 is at 111.01, and for Bund, it is still seen at 132.94 initially.

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