Light Pressure In Recent Trade

Several factors seem to contribute when it comes to the early, modest downtick in Bund futures, with little headline flow seen:

• This week’s EGB issuance schedule (more colour in earlier bullets)
• Higher for longer talk surrounding the Fed over the weekend (FT survey, Trump reportedly eying hawks to lead the Fed if successful in Presidential run).
• Fresh upticks in crude oil, with WTI futures looking through last week’s high.
• Hawkish BoJ sources reports, although JGBs were more responsive to the latest BoJ JGB purchases announcement, rallying in Tokyo.
• Bund futures now -3 at 131.80, initial support at Friday’s low (131.71).
• A continuation lower would expose key support and the bear trigger at the Feb 29 low (131.23).
• German cash curve sees light twist steepening, yields 1bp lower to 1bp higher.