13 May 2015
Bond market volatility remains – KBC
FXStreet (Barcelona) - The KBC Bank Research Team comments on the volatility in the global core bond market, sharing the performance of German bunds and US note futures.
Key Quotes
“Global core bond trading was again very volatile yesterday. The Bund started lower on the back of late/overnight US weakness. The rout continued unabatedly amid an empty eco calendar. The rising oil price played in the disadvantage of core bonds. The Bund approached Thursday’s sell-off low but it didn’t come to a test.”
“During the US session, the sell-off halted and core bonds even recovered intraday losses. The US 10-yr yield tested the 2.30% neckline of double bottom, but a sustained break higher didn’t occur. Both the Bund and the US Note future are in oversold conditions. The $24B 3-yr Note auction went well, but hardly affected trading.”
“At the end of the day, changes on the US yield curve varied between -2.0 bps (2-yr) and -3.8 bps (5-yr). The German yield curve bear steepened with yields 0.7 bps (2-yr) to 7.6 bps (30-yr) higher.”
“On intra-EMU bond markets, 10-yr yield spreads versus Germany ended mixed with a Greek outperformance (-12 bps).”
Key Quotes
“Global core bond trading was again very volatile yesterday. The Bund started lower on the back of late/overnight US weakness. The rout continued unabatedly amid an empty eco calendar. The rising oil price played in the disadvantage of core bonds. The Bund approached Thursday’s sell-off low but it didn’t come to a test.”
“During the US session, the sell-off halted and core bonds even recovered intraday losses. The US 10-yr yield tested the 2.30% neckline of double bottom, but a sustained break higher didn’t occur. Both the Bund and the US Note future are in oversold conditions. The $24B 3-yr Note auction went well, but hardly affected trading.”
“At the end of the day, changes on the US yield curve varied between -2.0 bps (2-yr) and -3.8 bps (5-yr). The German yield curve bear steepened with yields 0.7 bps (2-yr) to 7.6 bps (30-yr) higher.”
“On intra-EMU bond markets, 10-yr yield spreads versus Germany ended mixed with a Greek outperformance (-12 bps).”