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EURO GOVT-Bund steady after choppy week, charts signal gains
November 30, 2012 / 7:16 AM / 5 years ago

EURO GOVT-Bund steady after choppy week, charts signal gains

LONDON, Nov 30 (Reuters) - German Bund futures were broadly unchanged at Friday’s open, consolidating towards the top of the recent range after a turbulent week of trading, with technical charts pointing to a fresh rise.

A deal agreed earlier this week to release aid funds to Greece had dented the appeal of safe-haven Bunds before doubts about the plan, and broader concerns about crucial budget talks in the United States, resurfaced to help Bunds recover losses.

The Bund futures contract was 1 tick higher at 142.85, well above Tuesday’s low of 141.84 and below the Nov. 13 high of 143.48. Technical charts showed support at 142.62, the mid-point of Tuesday’s steep selloff.

“As long as 142.62 is support we’re happy bulls and expecting an assault on 143.48,” said Futurestechs technical analyst Clive Lambert.

Investors hungry for higher yielding debt have piled into the euro zone’s peripheral markets this week pushing Italian 10-year bonds yields briefly to a two-year low, but after such sharp moves traders saw limited room for a further rally Friday.

“Yesterday morning (peripheral debt) went off to a flyer and then gave it all back in the afternoon. It’s had a good week but I still don’t think we’re out of the woods,” a trader said.

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