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Unwind some of the BoE sell off

BONDS
  • Bund continues to consolidate some of the post BoE sell off.
  • The contract stopped short of the psychological 168.00 (printed 168.11 low).
  • Below the figure, support would be seen at 167.69 Low Nov 1, 2021 (cont), followed by 167.46 4.618 proj of the Dec 8 - Dec 20 price swing.
  • A clear break through the latter, would open to the next yield level seen at 0.152%, which would equate to 166.97.
  • UK 10yr yield tested highest level since December 2018 (printed a 1.382% high).
  • But the contract is seeing similar unwind.
  • Next resistance in 10yr UK yield would be seen at 1.50%, equate to 120.21

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