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It's all about Yields

BUNDS
  • Bobl printed a 0.548% high, the highest print since 16/05/14.
  • Technically, support is 127.750 Low Jun 5 2015 (cont).
  • But more importantly, 0.614% is the next upside Yield level, 76.4% retrace of the 2014/2020 fall.
  • Today, this would equate to 127.43 (ref 128.21).
  • 2yr Schatz is back into positive territory, highest since 04/07/14.
  • Next upside yield target is at 0.106% (38.2% retrace of the 2011/2020 fall), round it up to 0.110%, and this would equate to 110.39 (ref 110.58)

Chart source: MNI/Bloomberg

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