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Price Signal Summary - Gilts Remain Vulnerable

  • In the FI space, Bund futures maintain a softer tone following last week’s extension lower. Price has cleared key support and the bear trigger at 132.12, the May 26 low. The clear break strengthens bearish conditions and confirms a resumption of the downtrend. This opens 130.46, the 1.236 projection of the Jun 1 - 16 - 27 price swing. Moving average studies are in bear-mode position, reinforcing current trend conditions. Initial firm resistance is at 132.18, the Jun 16 low.
- {GB} Gilt futures remain soft and last week’s break lower reinforces bearish conditions. The contract has cleared key support at 93.88, the Jun 20 low, to confirm a resumption of the downtrend and maintain the bearish price sequence of lower lows and lower highs. This signals scope for a move to 91.80 next,1.382 projection of the Jun 1 - 20 - 23 price swing (cont). On the upside, initial firm resistance is seen at 93.88. A break of this level is required to ease bearish pressure.

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