Bunds: maintaining recovery momentum on broad risk aversion

The 10 year German benchmark has continued its firm rebound from sub-162.00 levels amidst an extension of risk-off/safe-haven positioning that started during the latter part of Tuesday’s Eurex session and remained the predominant theme overnight. The core debt future has carved out a 162.69 peak vs yesterday’s 162.39 close and is inching closer towards 162.73, which would technically close a chart gap. The corresponding cash yield has backed off further from the 0.4% level, accordingly, leaving less concession for upcoming Eur3 bn Bund supply, but in the current environment this may not unduly impact demand for the tap. Also ahead, French inflation data, Eurozone trade and ECB’s Praet, with UK jobs and US CPI providing the external highlights.

15 Nov 2017 - 07:27- - Source: ransquawk

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