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10yr 0.000% yield is in sight

BUNDS
  • Bund continue to trade heavy on the cash open, mainly taking their cue from US Treasuries, as US fell overnight, as desk return from the Bank holiday.
  • Immediate target for Bund is eyed at the 0.00% yield level.
  • German Yield is -0.013%, and reference 169.47, zero percent would equate to 169.27.
  • There is no real market moving data for the session, and early focus will be on supplies.
  • SUPPLIES: UK £2.5bn 2029 (equates to 17.7k Gilt), German 5yr Bobl EU4bn (equates to 34k Bobl) should weigh on the contract. Italy 10-year 0.95% Dec-31 BTP and the off-the-run 15-year 2.25% Sep-36 BTP. for EU combined EU1.75bn, limited impact expected.
  • SYNDICATION: Belgium 10yr and Finland is set to sell up to E1.0bln of its 5-year 0% Sep-26 RFGB.
  • EARNINGS: US GS and BNY Mellon (both pre market)

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