FINANCIALS: Raiffeisen Headlines

Cues from wider FI markets continue to dominate, with gilt futures back within Friday’s range after the opening rally faded. Recent demand in Tsys and Bunds then pulls the space away from session lows.

• Futures last 92.35 vs. session lows of 92.17.
• The bullish technical cycle in the contract remains intact, although it has moderated.
• Initial resistance located at the 50-day EMA (92.83), while initial support comes in at the Feb 20 low (91.78).
• Yields flat to 1bp higher across the curve, modest steepening seen.
• 2s10s on track for a fresh cycle closing high, 5s30s ~1.5bp below its own closing cycle high.

• +6,000 FVH5 106-24.25, buy through 106-24 post time offer at 0942:00ET, DV01 $246,000. The 5Y contract trades 106-24.5 last (-1.75).

• HEADS UP! Tightening bias in the Tnotes/Bund spread continues today, and we are now looking to test the 2025 low situated at 194.5bps.
• While the next hurdle is still seen at the rounded 190.00bps level, better is seen towards ~184.61bps.

(Chart source: MNI/Bloomberg).