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Tnotes/Bund spread targets the June low

BONDS
  • With Tnotes back in the green on the day and at session high, just ahead of the initial resistance of 110.04, the 10yr US/German spread is starting to lean tighter, by just 0.5bp so far, but the spread is nonetheless now looking at testing the June low of ~173.83bps.
  • Investors will be keeping a close eye on further tightening with the 2024 low situated ~170.59bps, which is also the tightest level since September 2023.

Chart source: MNI/Bloomberg.

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