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German 10yr Yield lowest since mid September

BONDS
  • Gilt futures are still leading EGBs and Treasuries, and although Gilt is now of its best level, US 10yr TYZ3 test session high, with next immediate resistance coming at 108.00 for the US contract.
  • Bund is through next resistance in future, albeit off its best level, in turn pushing the German 10yr Yield through its lowest level since mid September.
  • Given the outperformance in Gilt futures, the Gilt/Bund spread is now over 7bps tighter and trading close to 165.00bps, ahead of the support seen at 160.3bps, the October low.

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