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A busier day ahead

BUNDS
  • Bund gapped lower overnight and through the initial support area of 133.69/133.66, but has managed to close it, although still trades in a 25 ticks tight lower traded range, ahead of a busier session.
  • Risk remains tilted to the downside, with next support area of interest comes at 133.34/133.30, circa 2.4% in Yield terms.
  • Small resistance moves down to 134.16 initially.
  • It's a busier day ahead, Spain PPI, German IFO, US GDP, Core PCE, IJC, Wholesales Inventories, and Durable goods will be the data in focus.
  • But the ECB rate decision (expected unchanged) and Presser will be at the forefront for Europe.
  • SUPPLY: Italy 2025 (equates to 18k short 2yr BTP) could weigh, and US Sells $41bn of 7yr Notes.
  • SPEAKERS: ECB Lagarde presser.

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