Carney's day.

Bunds made a new low for the week in another slow low volume day. I see the Curves at the upper end of range, but i won't be selling any spreads. I'm looking for dips to buy whilst I have moved my short term bund resistance mark to the 142.27 area that held well yesterday. If that breaks I'll sit out until 142.62ish.

€ curve

The U.S. 10 year doesn't look half as heavy as it finished the European session at the upper end of its range.

With an auction tonight we might see some interesting price action. Ten year vs Bund at top of recent range.

EU teds

Praet's dovish comments early yesterday added some extra bid tone to Euribor that has helped maintain a slight up trend in teds. Algos spoofing bid and offer left right and centre have been making it a tricky trade...Handle with care!

All eyes on the Bobl auction this am. Whilst the main interest for the day will be Carney and the forward guidance. Delicate balance required, he doesn't want to spook the markets after such strong U.K. data of late.

Short sterling

Gilts

Gilt bund spread

 

 

Good luck

L