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US vs 10yr Germany

BONDS
  • US Tnotes vs the German 10yr Bund is a little wider in early trade, as Bund and EGBs outperform the US so far today.
  • The spread seems to be finding some demand ahead of the 150.00bps level, but a break through that handle, would open to ~144.00bps, the 61.8% retracement of the 2023/2024 range.
  • Outright Bund did extend to that the initial area of interest noted at 134.50/134.61, and is making a test through that level now.
  • The Yield is also through the noted May's low that was situated at 2.168%.

Next stop, today reference 134.58:

  • 2.139% = 134.85.
  • 2.078% = 135.50 (August low, lowest since Jan).

Chart source: MNI/Bloomberg.

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