Prevailing Bullish Tech Themes Remain Intact In Bund & Gilt Futures, Despite Post-NFP Dip

While the reaction to NFPs in U.S. Tsys and FOMC-dated OIS pricing is clearly in the driving seat here, we note that Bund futures have bounced from levels just ahead of the low set on 4 April, leaving bullish technical trends intact. The 4 April low protects the 20-day EMA (135.28), which provides initial firm support. Meanwhile, Gilt futures have breached yesterday’s low but bears couldn’t force a challenge of the 2 May low (100.37). Short-term bullish momentum remains intact in that contract as a result, with bears needing to force a break of the 19 April low (99.73) to turn the tide there.