Better than expected NFP on friday still weighing on thin bank holiday volume in the U.S. bonds.
Bunds, First area of support is 140.91 to 87. I see the real tester at 140.55 for this week. To the upside 141.26. Momentum is to the downside at present but Ger CPI this am could be an influence on direction for today at least.
€ curve, with the long end heavy the curve is obviously steepening. I see no reason to be holding short positions in the spreads right now. Looking for dips to buy.
€ teds, Rate cut fever is now over with. I anticipate some range trading in these. Although in thin markets the path of least Resistance algo in Euribor will take it wherever it wants.
With UK CPI, PPI & RPI out today It would be foolish to not look at the freight train that is
Gilt-Bund spread!
Good luck
Lee
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