Thanks to C2C rail I had to get the underground this morning which added 30 mins to my journey (That started 20 minutes later than normal!) So a Pre Eurex open post was never gonna happen.
Mustn't grumble as it doesn't happen often.
Right back to business.
Slow start yesterday where any attempt by the long end for new highs were to be hampered by the continual reduction in bank take up of ECB operations thats going on. This weighed heavily on the short end causing bear flattening to occur.
It took Fed speakers to really help the Long end to catch up. Plosser and Fisher both relaying the sentiment that they'd like QE finished sooner rather than later. Whilst Plosser stated that last weeks Non Farm release disappointment should not affect Taper.
Bunds
Looked heavy into yesterdays close, but as the data releases yesterday never got anyone excited so its sideways to a lower for me.
140.91 the first upside target if we to try higher, I'm looking at ~37/40 as first downside target.
€ curve, If we can get some momentum in the bund to the downside we could see a decent amount of curve steepening. Bobl auction to watch out for today could be a short term infuence.
My bias for curve steepen is currently being hindered by the weakness in the short end. So I'm Treading lightly. No one ever made their year in January!
Good luck.
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