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GILT AUCTION RESULTS

DMO sells GBP2.25bln of the 1.25% Oct-41 gilt

ESM ISSUANCE

E1.5bln of 6-month bills sold

US 10YR FUTURE TECHS

(M1)‌‌ Bearish Focus

BUNDS

Block trade

EQUITIES

Equities led higher by risk-on Asian session

(U0) Payrolls Fails to Rock the Boat

BUND TECHS
  • RES 4: 179.56 High Mar 6 (cont)
  • RES 3: 179.22 1.000 proj of Jun 5 - Jun 29 rally from Jul 2 low
  • RES 2: 178.23 0.764 proj of Jun 5 - Jun 29 rally from Jul 2 low
  • RES 1: 178.00 / 01 Round number resistance / High Jul 31
  • PRICE: 177.05 @ 03:40 BST Aug 10
  • SUP 1: 176.83 Jul 29 low
  • SUP 2: 175.95 Low Jul 24 and key near-term support
  • SUP 3: 175.77/54 Low Jul 20 / Low Jul 9
  • SUP 4: 175.04 Low Jul 2

After finding fresh impetus to close up at the 178 handle and the Jul 31 high earlier in the week, Bund futures reverted back to the middle of the recent range Friday. The modest recovery Thursday is yet to put the recent highs under pressure as momentum appeared to dissipate. For now, directional parameters are intact, with markets needing to close above 178.00/01 to re-accelerate any rally. The ultimate target holds at 179.56, Mar 6 high. Support is at 176.83.

MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com