DET10Y German Bund 10-Year Yield Daily Chart

The German bund performs a record selloff move over the last two weeks. Ever since last year the bund has been leaking lower and lower making lower lows and lower highs in yield as traders flock to safety buying bunds regardless of price (price higher yields lower). The German bund dropped to 0.049% and it looked like the 10-year will go negative in the days ahead joining the other short duration yields that are negative. But instead a rocket launch occurs in yield. Traders sell bunds in force sending yield from 0.049% to 0.450% in only a couple weeks time.; a huge 40 basis point move.

The positive divergence, oversold conditions, and mean reversion required (pink dots) created the bounce in yield. Indicators are now overbot with neggie d on the stochastics and Williams. Thus, yield may relax for a couple days but the RSI and MACD wants another higher high in yield. The 0.45% is resistance from January so perhaps a back kiss to the 0.30%-0.39% level is on tap then a move to 0.50%. For the weeks ahead, the bund may simply begin lining out sideways with a slight upward bias through 0.20%-0.60% the remainder of the year. Yield may spend a lot of time in the 0.30%-0.52% range going forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.