. Market Outlook on German Bund Future - 13 September 2022

Market Outlook on German Bund Future – 13 September 2022

13 Sep 2022

Bonds Tremble as Inflation Hits new records

On Tuesday German 10-year bund future rose 0.21% to 144.34.

A difference of 50 bps hike from the Swiss National Bank overnight sent the franc on its sharpest rise in seven years.

On Monday Asian shares got a kick start while the dollar remains in demand.

The Dow Jones Industrial Average is up 229 points to 32,381.34, the Nasdaq Composite index is down 0.79% to 9,020.77, S&P500 is down by 0.71% to 3,324.85 the S&P 500 has failed to move above the 200-day moving average currently it’s trading below 200 MA.

According to Reuters data economist forecast, the fed will raise the rate by 50 bps in September. 10-year yields were down by 3 bps at -0.085 in Germany, according to Reuters data on Tuesday, the 10-year US treasury yield decreased by 4 bps.

10-year treasury notes benchmark rose 26/32 in price to yield 1.7916% from 1.882% on Thursday, After the consumer price index increased the German bund yield rose by 8.15 overnight. Chinese PMI data showed another month of contraction in services.

In Asian sessions, S&P500 gave up an early rise, German inflation figures were also higher, German Bund 2-year yield rise by 212 bps, and German Bund 5-year yield rose by 231 bps.

On technical fronts, the German 10-year Bund future; RSI stood at 29.947, and Currently, it is trading below all SMA. So, the SELL position can be taken with the following target and stop-loss:

TRADE SIGNAL: German 10-year Bund- SELL AT 144.34, TARGET:139.50, STOPLOSS:149.45