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Gilt/Bund spread test immediate resistance

BUNDS
  • Despite the small bounce in Gilt, with some investors fading off the 4.10% mark in Yield.
  • This level equated to 97.57 on Friday, but to 97.66 today.10yr Yield has now printed a 4.108%, but has so far held on receiving interest.
  • Roll is still fairly subdued, with just 5.5k lots traded in the Sep contract.
  • Given the moves in futures, the Gilt/Bund spread now test the immediate resistance at 162.12bps, the 21st October high.
  • Above the latter, opens to 165.00bps and 172.82bps, the 61.8% retrace of the Sep/Feb fall.

Chart source: MNI/Bloomberg

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