Euro climbs and German bund yields surge as ECB officials put July rate hike in play
The euro was stronger and the yield on the 2-year German bund surged after European Central Bank officials talked up the possibility of rate hikes as early as July. Luis de Guindos, vice president of the ECB, said, "from today's perspective, July is possible and September, or...
There is a broad consensus out there for higher Bund yields, and we agree.
Euro zone bond yields ticked up again last week as inflation expectations rise.
Our updated chart shows that from a TA point of view we will need to break over the resistance at 173 and aim higher.
If this resistance is not breached over, we could experience a significant drop in the price...
Here you can see where the money in the euro area flows. It is clear that a lot of money is flowing out of the euro area but within the euro area the safe havens are being sought. At the moment these are still the German government bonds and you can see that very nicely since March and yesterday's panic high of the Eurobund Futures. After a short consolidation, I...
The BundFuture has a very high level of resilience and is likely to continue to decline until the first half of 2019. This indicates that a slight increase in interest rates on 10-year German Bunds is to be expected at least in the short term.
As of mid-2019, uncertainty in the euro-area should prevail again and thus demand for the "safe" harbour of-BRD-bonds rise...
Midterm forecast Euro Bunds Future:
Expect 3rd wave down reaching for 160.50 - 160.00, taking out stops below the structure in the process. Then a consolidation followed by a move up to 167.50 - 167.75 to close the gap.
Special focus on the Fib Time Series, would love to see the swings at the marked lines.
