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Looking to close the gap

BUNDS
  • Bund is now back and hovering at session low, and will look to make another attempt at the opening gap, would need a test down to ~134.70.A clear break through could open to 134.37.
  • The Italian 10yr BTP still outperforms, and is seeing elevated volume in early trade, while German volumes are still on the more muted side.
  • The Opening Gap in the BTP would be down to 120.58, but not a good Tech study to use for this types of contracts.
  • BTP/Bund spread is now just over 1.5bp point tighter, and still eyeing the August low situated at 133.9bps.
  • In Rates, notable volume is once again in the ERZ4, again mostly spread related.

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