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Bond of the Week: 23 June 2016
Recovery rally by Swiss 10yr Bond Yield

Chart of the day: Recovery rally by Swiss 10yr Bond Yield


The Swiss 10-year Bond Yieldhas launched a recovery rally from a new all-time low at -0.522%.  The move back over the previous floor plotted earlier in the year at -0.449% gives rise to hopes for a further 'bear trap' counter rally over the short term.



Weekly Comment:


Government Bond Futures 


US - The US 5-year Treasury Note future has been correcting from the overbought contract high, at 121.961, this week.  The pullback has now reached an area of potential support from the trading band starting near 121.  Otherwise, next chart support is near the 200-day MA.


UK - Having become extremely overbought, theLong Gilt instrument is also falling away from the contract high at 126.79.  Prices probe potential support along 124.  Should that fail, the next target is around 122.

Europe - The theme of unwinding from the overbought contract high continues with the Euro 10-year Bund.  If potential support near the 50-day MA fails to offer a lift, the next chart support here is around 162.


Asia - A new contract high was achieved by the JGBfuture at 152.87 recently.  However, with the advance becoming overbought here too, a pullback has subsequently occurred.  At present, support near the 50-day MA remains intact.


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