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4 May 2015
German 10-year Bund yield rises for the third consecutive session
FXStreet (Mumbai) - The yield on the ten-year German Bund yield rose to a high of 0.407%, as it extended gains for the third consecutive session.
Bunds high probably behind us?
Bond traders are of the opinion that the Bunds were overtly expensive and despite the ECB’s bond purchase program, the yields could continue to go higher during the summer. The slight drop in the German manufacturing PMI failed to weaken the Bund yields. Moreover, the activity remained in the expansive territory for yet another month.
Meanwhile, demand for Bunds, which are safe haven, fell since the Greece crisis is out of the market focus at least at the moment. Consequently, the 10-year yield rose from the record low of 0.049%, to hit a high of 0.403%.
10-year Bund yield Technical Levels
At the moment, the yield is trading at 0.403%. The immediate resistance is located at 0.409% (Feb. 18 high), above which gains could be extended to 0.429% (Mar. 5 high). On the flip side, a break below 0.386%, under which losses could be extended to 0.317% (Feb. 17 low).
Bunds high probably behind us?
Bond traders are of the opinion that the Bunds were overtly expensive and despite the ECB’s bond purchase program, the yields could continue to go higher during the summer. The slight drop in the German manufacturing PMI failed to weaken the Bund yields. Moreover, the activity remained in the expansive territory for yet another month.
Meanwhile, demand for Bunds, which are safe haven, fell since the Greece crisis is out of the market focus at least at the moment. Consequently, the 10-year yield rose from the record low of 0.049%, to hit a high of 0.403%.
10-year Bund yield Technical Levels
At the moment, the yield is trading at 0.403%. The immediate resistance is located at 0.409% (Feb. 18 high), above which gains could be extended to 0.429% (Mar. 5 high). On the flip side, a break below 0.386%, under which losses could be extended to 0.317% (Feb. 17 low).