- Bunds weekly chart has potential to form a double top.
- Price action feels strange. Don't seem to be negatively correlated with other European bonds anymore. Today its BTPs down, Bunds down (wider European bond spreads notwithstanding).
- Dire bund auction (39% retained by Buba). Reports Asian holders no longer keen on buying bunds. Worry EU debt burden to fall on Germany.
- Critical downside chart points confirming trend change = 134.77 and 132.89.
2 comments:
134-65 low today. Amazing.
From Simon Penn UBS Futures =
Market implications: the ECB is better at the game of chicken than
Germany is. In fact Merkel isn't especially good at it full stop. The above points aren't necessarily solutions, but they should serve to indicate that pressure on Germany to pay (which was always the talking point right back at the beginning of the crisis and Greece's move to bailout) will only intensify. There's an ironic trade now: the worse the crisis gets, the more Bunds sell off. They aren't the safety instrument any more, they are the payment mechanism.
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