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Lower with the bear trigger in focus ahead of the ECB

BUNDS
  • Bunds and Treasuries have both moved a bit lower this morning on the open ahead of the ECB meeting later.
  • Bund futures have briefly breached the 136.46 low of 25 October. Our technical analyst notes that the bull cycle remains in place for now but with the moves lower this morning, the bear trigger is in focus at 134.02, the low of 21 October.
  • The curve has been bear flattening this morning with 2s10s 1.6bp flatter at 15.7bp (the flattest for a month) and 10s30s 0.8bp flatter, remaining inverted at -1.9bp.

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