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Gilts Test Bear Trigger, Bunds Near Tuesday's Low

BONDS

Gilt futures drop 28 ticks and pierce Tuesday's low of 94.37 to set a session low of 94.26 before rebounding. As such they are testing the bear trigger levels identified by our analyst (94.37/93.88 Low Jun 30 / 20).

  • In parallel, Bunds drop 27 ticks to near Tuesday's low of 132.80. Support beyond that lies at 132.47 (Low Jun 22)
  • No news evident for the move which comes along with some bear steepening in both curves, under an hour before the cash close.

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