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PMIs in focus

BUNDS
  • The short end is once again leading, with the 5yr Bobl Yield breaking above the 0.70%, and highest print since the 28th March 2014.
  • US 10yr Yield continues to attempt a test at 3%, but has found good fading interest, similarly to {ge} Bund and the Psychological 1% (Equated to 152.82 yesterday, printed 153.10 low overnight).
  • Govies are well off their lows since the EU cash open, but still in the red, although seeing better consolidation of the US 2yr, and 5yr, with futures back in the green.
  • Powell was once again Hawkish and looking at next week's FOMC median, the majority of Economist are going for 50bps.
  • So the surprise next week, would be lesser hike, but very unlikely as most CB, try to follow market expectations, to keep them stable.
  • Looking ahead, EU, UK and US services PMIs are the only notable data.
  • SPEAKERS: ECB Lagarde and BoE Bailey, unlikely to learn anything new.
  • EARNINGS: AMEX and Verizon (Pre market).
  • RATINGS: S&P on Greece, Italy, Netherlands, and Moody's on Slovenia

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