Yesterday afternoons drift lower in bonds met support not long after Eurex close. US 10s have bounced some 5/32s so I expect bunds to open around the low 80s. Medium term momemtum is still upwards but with some decent data to look out for this morning I would remain flexible on todays direction.
Tya
first support around 140.70 for me but my bias is to buy dips at present...Although a failure to get above 91/92 may signal a small turnaround day today. Uptrend still intact whilst above 140.55.
€ curve. Steepening continues. We have seen quite an impressive trend here since the temporary US debt deal has been agreed. Even Bobl bund spread took quite a tumble. Smart money would be to fade into any rallies in these today especially if bunds stays above 140.55.
€ teds The brief show of strength after the Non farm number has given way and a complete reluctance to follow the bonds higher has led to quite a sharpe down trend occuring. Lots here will depend on the LTRO repayments today.
Eur m3, Ger IFO and UK GDP will keep us entertained before LTRO repayments. Whilst this afternoon we have Durable goods and Michigan sentiment to look forward to.
Be lucky
Lee
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