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TECHS: Firm Start To The Week

BONDS

FI markets have started the week on a firm note:

  • Bunds (Z0) have breached a key resistance at 174.51, Aug 21 high. This opens:
    • 174.72, 0.764 projection of the Aug 28 - Sep 9 rally from the Sep 10 low and
    • 175.08 further out, Aug 4 high and a major resistance.
  • Gilts (Z0) have probed resistance at 136.87, Sep 17 high. The focus is on 137.05 next., 76.4% retracement of the sell-off between Aug 4 - Aug 28.
  • Treasuries (Z0) attention is on:
    • 139-24, Sep 17 high and
    • The more pertinent resistance at 139-29, Sep 3 high. A break of this level would strengthen bullish conditions.

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