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Testing support in Bund

BONDS
  • Bund tested initial support at 135.85, printed a 135.86 low.
  • Moves has been led by US Treasuries giving back most of their early gains, as desks faded some of the post NFP sell off earlier.
  • Treasuries are back in the red, and the TYM3/RXM3 spread stays tighter overall, at similar range that we saw during the European morning session.
  • A break through 135.85 in Bund, would open 135.39.
  • In terms of flows, volumes are still subdued.

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