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Tentatively Breaks Resistance Level Amid Risk-Off Spread Widening

BUNDS

Bunds break to session highs on the US Treasury move - triggered mainly by mounting downside in regional bank equities.

  • The front (March) contract has moved through the 136.16 Jan 5/8 high, where our tech analyst earlier identified a break would strengthen a bullish theme. Next resistance levels to watch: 137.96/138.84 High Jan 4 / High Dec 27.
  • Of note, swap spreads and periphery EGB spreads widened sharply as well alongside this move, mirroring the risk-off move yesterday.

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