10yr Italian Government Bonds: No Rest for the Wicked

Italian 10yr yields have just surpassed the 2.61% level. Bond are clearly in a free fall after the earlier breakout below ~100 earlier in May. The first target at 95.21 has just been surpassed, opening the road towards the secondary target at 90.18. Minor counter trend rally’s are allowed up to 98.65 without altering the highly bearish outlook.


IGBs look considerably worse than Spain, even though Spain and Portugal are playing some catchup.

Primary trend: negative
Outlook: highly negative
Strategy: hold-short / sell rallies
Support: 95.21* / 90.18-
Resistance: 98.65 / 102.60 / 103.10
Outlook cancelled/neutralized above 98.65
Chart PatternsTrend Analysis

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