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BUNDS
  • Bund stays on the backfoot, with continued pressure in Gilts.
  • Italy underperforms the most, translating in a 3.5bps wider spread against the German 10yr.
  • Desk fades move circa the 98/100bps area
  • Bund outright has tested initial support at 170.20, did print 170.17 low.
  • Most still eye 170.00 initially.
  • A clear break through the latter would open to next yield level seen at -0.178%, which today, reference 170.26, would equate to 169.50

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