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Price Signal Summary - Bund Sell-Off Extends

OUTLOOK
  • In the FI space, the Bund futures traded lower Thursday to extend the current bear phase that started Dec 7. The contract is weak once again today. Support at 139.13, Nov 28 low has been cleared and this suggests scope for a deeper retracement. The focus is on 136.48 next, 76.4% retracement of the Nov 8 - Dec 7 bull cycle.
  • Gilt futures remain below last week’s highs following the latest retracement. The break of 104.79 this week, Nov 30 low, exposed the firmer support at 103.54, the Nov 21 low. This level has been pierced, A clear break would strengthen a bearish threat and signal scope for a deeper pullback towards 103.00.

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