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Price Signal Summary - Sell-Off In Bunds Exposes Key Support

OUTLOOK
  • In the FI space, Bund futures maintain a softer tone and the contract continues to trade closer to its recent lows. Resistance at 134.95, the Jun 6 high, remains intact. A break of this level is required to expose key short-term resistance at 135.85, the Jun 1 high. Support at 132.97, the Jun 8 low, has been cleared and the break opens 132.12, the May 26 low and a bear trigger.
  • Gilt futures remain bearish and Tuesday’s move lower reinforces current conditions. The contract has pierced support at 94.21, the May 26 low and bear trigger. A clear break of this level would confirm a resumption of the downtrend and open the 94.00 handle initially. Initial firm resistance is at 96.63, the Jun 9 high.

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