Bund yields are topping

Evidence says that the selloff in Bunds has passed for now.  Bunds yields are topping out and turning near/medium term bullish. Such a change should be construed as bullish for risk assets.

Momentum & Elliott Wave analysis are consistent with a yield top (price low), as is the series of daily candlestick formations over the past two days. Finally, futures have held long term trend line support. 

"In the sessions & weeks ahead, we look for a corrective pullback & renewed choppy range-bound activity into the 79.3bps/ 47.2bps range." says BofA Merrill Lynch