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BUNDS: Lower As Greens Signal Hope For A Fiscal Deal

BUNDS

Bunds to fresh session lows as Green Party co-leader Brantner points to hope re: a fiscal deal being struck this week.

  • Brantner also stresses that the party is ready to negotiate, although pushes back against the idea of giving a “blank cheque”.
  • A reminder that most expected a fiscal deal to be struck ahead of the sitting of the new Bundestag later this month, even after the well-known stumbling blocks for the Greens were stressed/highlighted by senior party members over the weekend.
  • Yesterday’s range in Bund futures still intact despite the ~50-tick fall from ~128.00 to 127.52.
  • The technical set up in the contract remains bearish, although it is in oversold territory.
  • Bears will look to force a break of Friday’s low (127.18) to expose the March 6 low and bear trigger (126.64).
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Bunds to fresh session lows as Green Party co-leader Brantner points to hope re: a fiscal deal being struck this week.

  • Brantner also stresses that the party is ready to negotiate, although pushes back against the idea of giving a “blank cheque”.
  • A reminder that most expected a fiscal deal to be struck ahead of the sitting of the new Bundestag later this month, even after the well-known stumbling blocks for the Greens were stressed/highlighted by senior party members over the weekend.
  • Yesterday’s range in Bund futures still intact despite the ~50-tick fall from ~128.00 to 127.52.
  • The technical set up in the contract remains bearish, although it is in oversold territory.
  • Bears will look to force a break of Friday’s low (127.18) to expose the March 6 low and bear trigger (126.64).