30y Bund yield testing highest levels in 15 years – Commerzbank

FXStreet Insights Team FXStreet

Commerzbank Rates Strategist Hauke Siemßen notes that the 30y Bund yields are testing their highest levels in 15 years, with bearish steepening dynamics in the market. The analysis highlights strong demand for recent syndications, particularly the BTP orderbook, which was notably robust. The report suggests that the market is well-prepared for upcoming auctions, indicating a cautious yet positive outlook.

30y Bund yields under scrutiny

"EGB yields are back at the highs with curves bear-steepening and 30y Bund yields testing the highest levels in 15 years."

"Nonetheless, the BTP orderbook of €157bn was super strong, indicating that there is sufficient investor demand at these valuations."

"While the bi-weekly SPGB and OAT auctions are still on the agenda tomorrow, markets are probably well-prepared for them and tenors only extend to 23y."

"We suggest holding on to BTPs longs for the time being given the positive carry environment amid supportive risk sentiment."

"Potential for further positive rating action after S&P attached a positive outlook to its BBB+ rating last week."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.