Month-end puts Bunds under pressure

Bunds (and core fixed income in general) are under some fairly decent pressure this afternoon with month-end rebalancing flows likely responsible for shifting money from fixed income into equities. However, Bunds remain above their key near-term support at the 20-ema which comes in at 174.19.

• Peripheral bonds are also moving lower, but spreads are mixed. BTP spreads have narrowed while Spanish and Portuguese spreads have widened.
• Bund futures are down -0.36 today at 174.51 with 10y Bund yields up 1.8bp at -0.528% and Schatz yields up 0.9bp at -0.705%.
• BTP futures are down -0.32 today at 147.77 with 10y yields up 0.5bp at 0.856% and 2y yields down -0.2bp at -0.232%.
• OAT futures are down -0.39 today at 168.62 with 10y yields up 1.9bp at -0.249% and 2y yields up 0.3bp at -0.667%.