Wednesday, July 8, 2015
Bund, like Treasuries are Ready to ‘Chill’ on Greece for Now
Treasuries too are more likely to consolidate lower. In the midst of an auction cycle, dealers advise that concessions are necessary in order for a successful auction today. As is, 10 yr Treasuries like Bunds will form a bearish Harami today with a settle below 127-04, but above 126-20+.
There will be time for traders to get anxious about the next step in the Greece debt crisis (Sunday night). Now is a better time to focus on the prospects for a stronger message from the June FOMC minutes or Yellen’s speech on the U.S. Economy on Friday’s. Afterwards, we can anticipate overemphasizing of the Greece situation again. For now however, Greece is slightly off the front burner.