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A busy day ahead and heavy Italian supply

BUNDS
  • Little change for Bund, still trading at the lower part of this week's range, following the US Data yesterday, and more Hawkish rhetoric from the Fed and ECB.
  • Bond Month End extensions are on the small side for US and EU, and a non event for the UK, with contractions for the latter.Nonetheless, further push lower in Govies could provide some short cover, squaring, Friday's squeeze going into the weekend.
  • Some desks will look for support at 133.33, Yesterday's low, but better is seen towards the 133.13 area initially.
  • Resistance moves down to the 133.88/133.96 area.
  • Today sees, French prelim CPI, EU prelim CPI, Portugal prelim CPI, Canada GDP, US PCE core deflator, MNI chic PMI, final Michigan.
  • HEAVY SUPPLY: Italy 2028 (equates to 58k 2yr short BTP or 14.9k BTP 10yr), Italy 2033, 2034 (equates combined 42.4k BTP), should weigh.

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