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Price Signal Summary - Gilts Head South

OUTLOOK
  • In the FI space, Bund futures traded lower last week to extend the current bear phase that started Dec 7. The contract has also started this week on a softer note. Recent weakness resulted in a break of support at 139.13, Nov 28 low, strengthening a bearish threat. The focus is on 135.00 next.
  • Gilt futures started the week on a softer note, extending the current bearish leg. The move lower Monday resulted in a clear break of support at 103.54, the Nov 21 low. This has strengthened a bearish threat and signals scope for a deeper pullback - towards the 100.00 psychological support. A break would open 98.15, the Oct 4 low (cont).

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