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BONDS: Presence Of This Week's Tsy Supply Limiting Recoveries In Bonds

BONDS

Front-end to belly driven weakness in Tsys continues to limit recoveries from lows in EGBs and gilts, with the presence of this week’s coupon supply (2-, 5- & 7-Year Tsys) providing headwinds for that area off the U.S. curve.

  • Bunds and gilts near session lows, technical setups remain bearish, with key supports intact.
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Front-end to belly driven weakness in Tsys continues to limit recoveries from lows in EGBs and gilts, with the presence of this week’s coupon supply (2-, 5- & 7-Year Tsys) providing headwinds for that area off the U.S. curve.

  • Bunds and gilts near session lows, technical setups remain bearish, with key supports intact.