Bunds: eyeing 173.00 next as recovery rally continues

Eurozone debt has not paid much attention to reports of hawkish division within the ECB ranks via sources, or external factors that might be deemed bearish in normal circumstances, like yesterday’s sizzling US inflation data and a weak long bond sale, with a firmer rebound from initial post-policy announcement lows pushing the core 10 year bond up further from recent lows. In fact, Bunds are now targeting 173.00 in futures and -30 bp in yield terms as they piggy-back gains in US Treasuries, with little sign of a meaningful pull-back in wake of the Buba’s upgraded HICP forecasts ahead of more commentary from the GC via Holzmann and Knot that could well have preferred to scale down the PEPP. Back to Eurex, Bunds are hovering just below the top of a 172.98-79 range vs Thursday’s 172.53 close.

11 Jun 2021 - 07:55- - Source: newsquawk

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