OAT Futures and ‘Le Spread’ Euphoria May Risk Fading at 200-DMA
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
2539Z GR (European Central Bank)
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UUID: 7947283
(Bloomberg) -- Notable moves in OAT market have sent futures and France-Germany 10-year yield spread near key equilibrium levels that may drive tactical reversal in post-French vote reaction, Bloomberg technical analyst Sejul Gokal writes.
- See chart here
- OAT1 topside gap and high at 149.90 close to the YTD high and 200-DMA at 150.08-12; levels could still come into play in a last gasp move before potential accumulation of overbought reversal sessions
- 9-day RSI tests multi-mo. highs at ~81
- OAT-Bund spread narrowed to 48bps vs. 64bps Fri. close
- 200-DMA at 45bps could limit further spread compression as oversold conditions warrant corrective unwind
- As a risk factor, watch out for any consecutive daily breaks of the longer-term average line which should indicate strong behavioral change in OATs; such development should override current overbought market warnings
- NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
2539Z GR (European Central Bank)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283