EU BONDS: choppy, but bears trying to exert pressure

As noted earlier, trade remains relatively volatile ahead of potentially big drivers to come, ie the ECB meeting, next Fed chair appointment and top tier data. Once again, Bunds failed to make much headway on the topside after opening a little higher, and contacts continue to flag resistance around161.78-80, which has now held firm on several occasions. Hence, sellers are attempting to seize the initiative and nearest support situated between 161.44-46 has given way, with intraday stops set yesterday triggered and a fresh low just set at 161.26. Below that, 161.21-23 is the next downside objective for some, and then 161.07. Note, better than expected EZ flash PMIs may provide bears with extra impetus. Turning to Liffe, Gilts are also succumbing to offers within a 124.51-32 range, while a 6k lot clip has gone through in Dec17 Short Sterling at 99.475 to leave the front month contact at 99.47, and possibly signalling another uptick in the 3 month Libor fix today.

24 Oct 2017 - 09:06- - Source: ransquawk

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