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Late Burst Sees Bunds Break Through Resistance, Gilts Testing

BONDS

Bund and Gilt futures burst through session highs in the last 15 or so minutes, with little evident catalyst but in tandem with Treasuries also hitting session highs and equities/USD/oil sagging.

  • The push higher in Bunds brings the contract through the Nov 3 high at 130.76 (last trading 130.85, high 130.90) we identified earlier - a sustained break exposes 131.33, the 76.4% retracement of the Sep 1-Oct 4 down leg.
  • Gilt futures are now testing the 96.05 High on Sep 25 (last trading 96.02, session high 96.04), through which 96.37 (Sep 22 high) would be the next upside level to watch.

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