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US 5s and 2s push EGBs lower

BONDS
  • US short end 5yr and 2yr seemed to have led Govies lower in the past 20 minutes, dragging Schatz and Bobl lower, although German Govies are now bouncing off their lows.
  • The move in Treasury futures, is pushing the Tnote/Bund spread 2.7bps wider and through this week's high at 132.32bps.
  • Investors will look at the January high, and widest print since 14th December at 145.66bps for the next resistance area.

Chart source: MNI/Bloomberg

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