November 20, 2023 14:19 GMT
Wider Swings In Core Bonds Dominate, Peripheral Plays & German Fiscal Matters Also Eyed
Bund futures found a bit of a base ahead of initial technical support at the November 15 low (130.36), printing as low as 130.47 before recovering to 130.75 or so at typing, -30 on the day.
- Wider swings in core global FI sentiment have been at the fore for German paper today, with participants continuing to assess the fiscal impact of last week’s well-documented German court ruling on COVID-related spending in the background.
- Peripheral narrower plays after Moody’s updated both Portugal’s and Italy’s sovereign credit ratings may also be factoring in.
- Initial technical boundaries in the contract remain untouched, with a range of 130.47-131.00 seen thus far.
- German cash yields are 1.5-2.5bp higher on the day, with some light bear flattening seen on the curve.
- 2s10s and 5s30s stick to familiar ranges.