Barclays notes:Bund yields have somewhat stabilised, partly helped by ECB’s intentions to frontload PSPP purchases during May and June. We stick with trades which have indirect bullish bias but offer good risk/reward even if the EUR rates sell-off continues. Therefore, we continue to hold onto long Bund ASW vs EONIA, long 30y French ASWs, receive 1y1y fwd EONIA and short 10y Treasuries vs Bunds. We also expect Bobl and Bund future contract rolls to richen.After the sharp sell-off move over the past month, Bund has finally showed signs of stabilisation in outright terms over the past week with both 10y and 30y Bunds yields close to unchanged on the week. However, the market remains sensitive with intraday volatility being high. Elsewhere, on the data front, euro area May flash PMIs came in somewhat weaker than expectations mainly led by Germany, with France being more in line with expectations. Both ECB and Fed minutes for the April meetings were also out this week. While there was no new market-moving information in the former given that the Bund selloff and EURUSD rally have happened after the April meeting, the Fed minutes were perceived as slightly on the dovish side. However, Treasuries have still underperformed Bunds marginally on the week.

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