Bunds/Gilts: bears now in the box seat

Yet again the big figures are proving tough handles to keep hold of, and following the latest efforts to build a firm base at/over 163.00 and 125.00 for the respective 10 year EU benchmarks were thwarted, sellers have regained the initiative to send both back below and into negative territory for the day. Bunds just reversed to 162.68 (-40 ticks vs +22 ticks at the Eurex peak), breaching chart support at 163.07 (50% retrace of Tuesday’s move) on the way and with little difficulty it appears. 163.02 saw more stops filled and the 162.86-7 area has given way. Contacts suggest further sell-orders were housed sub-162.82, looking for 162.65-68 and then 162.50-54. Turning to Liffe, Gilts are a tick or so above 124.80 (-27 ticks vs +19 ticks at best), and could be conceding some room for the Budget, but nobody really expects any fiscal largesse from the statement. 30 year auction set-ups may be impacting Bunds as mentioned previously, and oil remains on the boil, but again not figured in the mix for fixed bulls for a while.  

22 Nov 2017 - 09:45- - Source: ransquawk

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