December Bunds remain under pressure even if the contract has been able to climb off the intraday of 138.82 to trade currently at 139.17, down 1.12 on the day. Renewed market optimism following Thursday's FOMC announcement has hit core bonds hard and stops got taken out, amplifying the fall. In the cash market, the 10-year Bund yields 1.63%, up 10bps on Thursday's close, and is at a 4-month high. Strategists nonetheless remain skeptical that this rise in Bund yields indicates the start of a sustained selloff in haven assets, citing plenty of hurdles around the ECB's OMT program, notably that Spain needs to ask for aid.
Find us on Google+
No comments:
Post a Comment