Bunds: firmly back above 160.00

A double or even multiple whammy for German and core Eurozone debt futures as heightened fears about an all-out global trade war are compounded by Italy’s latest political stalemate which has hit BTPs hard off the open (10 year futures down over a full point and corresponding yield up to around 2.15% at one stage vs sub-2% ahead of Sunday’s election), while Bunds are also seeing a relief bid of sorts on the comfortable SPD vote to back a grand coalition with Merkel’s CDU-CSU partnership. The 10 year German benchmark has been up to 160.31, 54 ticks above last Friday’s close, and just shy of nearest resistance around 161.34 on some charts (161.32-36, according to other tech studies). Beyond that area, 160.52 represents a 50% retracement from December peaks to the lows.