German Bonds Face Fresh Downside Risks After Technical Breakout
- Ten-year yields breach 18-month range top at 51 basis points
- Chart resistances for bund yield at 58, 69 and 76 basis points
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The technical outlook for German bunds has taken a turn for the worse.
As markets adjust to a hawkish shift in policy rhetoric from the European Central Bank, Thursday’s significant breakout saw 10-year yields break above their 18-month range top at 51 basis points. The bearish chart development has the potential of sparking a speedy ascent in the yield toward its long-term equilibrium line at 69 basis points.