06082013

U.S. ISM encouraged small selling in the bonds yesterday, bunds seem to to come off with more momentum than its transatlantic cousin.....Which I guess goes with the current us v ger spread trend

Bunds finally broke below 60's. Whilst it stays below I'm happy with the idea curves will steepen. Will be my main theme for the rest of August, but aware that thin summer markets can encourage erratic price action following no price action at all. So small and tight.
Next target on bunds 142.00, I expect minor resistance around 142.27.

€ curve

bor spreads

data this am.

9:30 UK Industrial and  Manufacturing production

10:00 Italian GDP and Ger factory orders

UK gilt auction and

 

 

Good luck

L