30-year Bund: Reasons to get long

The 30 year yield of the German Bund is in overbought territory with the bigger picture suggesting still lower yields to come, says Chris Williams at Newedge. This view is further supported by the failure of the 30yr yield at the 2.527 level, and a continued weakness in stocks. Finally, both German and US 30 year yields are forming similar patterns to the drop seen in 2011 which may point towards weaker yields for the rest of the year.