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10y Yield test 2.90%

BUNDS
  • Bund remains under pressure, helped by the UK inflation beat, albeit by 1 tenth, and although the contract has found support at the next 127.85 gap, printed a 127.83 low, the Yield will be showing above 2.90%, equated to 127.92 Yesterday.
  • Small resistance moves down to 128.34, and 128.76.
  • Italian BTP has also fully cleared 4.95% in Yield, with next target coming at 5.014% = 107.69 (October high and highest since 2012).
  • Not much on the data front for today, EU final CPI, and no tier 1 data out of the US.
  • SUPPLY: Italy Concambio, German EU4bn Bund (equates to 32.6k Bund) could weigh into the bidding deadline.
  • SPEAKERS: Fed Waller, Williams, Bowman, Barkin, Harker, Cook, but unlikely to learn anything new.

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