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OAT/Bund spread widens back to 80.00bps

BONDS
  • There hasn't been any new headlines throughout the Europe session, but longs are taking some of their positions off, Political French concern likely still weighing, some investors might look to start to position into Friday and ahead of the first round of the election due over the Weekend.
  • The Risk trade is clearly seen, as the OAT/Bund spread makes another attempt above the big initial resistance noted at 80bps, now at 80.2bps.
  • OATU4 has recovered from its session low, {us} post the US data, but a little surprising, with an overall mixed release for the US.
  • For the outright OAT future, next immediate supports are at 123.15, but more importantly 122.87 (2024 high in Yield).

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