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30yr supply

BUNDS

Bund trades steady on the cash and semi core Govie open.

  • Contract still lack clear direction bias, trading in a 86 ticks range (176.96-176.10) for the past 5 days.
  • Covid stockpile, distribution and vaccination rates should be coming at the forefront, as Global numbers of cases and death continue to rise.
  • German Curve trades flat, but might lean steeper on the margin going into supply.
  • BTP outperforms, after PM Conte got more support than expected on his vote of confidence win late last night.
  • In turn pushing the spread 2.5bps tighter.
  • Focus today, very little left on the data front, with just EC Final CPi, unlikely to move the needle.
  • SUPPLIES: German EU1.5bn 30yr (Equates circa 28k Bunds, or 9.8k Buxl)
  • US Biden's inauguration starts at 16.00GMT

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