Futures Look Through Early London Lows

Bund futures look through London morning lows as U.S. Tsys see some modest pressure, last -110 ticks on the day, just off the base of a 119-tick session range. Initial support at 137.33 has given way, bears eye the 20-DMA next, although that is still some distance away from prevailing levels.

• German yields are 4-9bp higher on the day across the curve, bear steepening. 10s have moved back above 2.00% but have failed to push meaningfully beyond old support levels above the figure (highs of 2.029% seen as of typing).
• As we have noted elsewhere, there has been little in the way of meaningful macro headline/inputs, outside of continued curve steepening pressure in JGBs.
• That leaves technical breaks/momentum at the fore, along with talk of profit taking activity, against a backdrop of diminished liquidity.