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A Little Firmer To Start

BUNDS

Bund futures lean on the Asia-Pac richening in U.S. Tsys and firm through the old futures open, leaving the contract +25 or so, comfortably within the confines of yesterday’s range, after hedging flows surrounding the pricing of the EU’s syndicated long end tap applied some pressure on Tuesday.

  • Regional news flow has been fairly muted, with Asia-Pac focus remaining on the potential for stimulus in China and eyes on today’s tier 1 risk events.
  • Final CPI readings from the Iberian nations and ECB speak from Lane and Vujcic provide some regional interest today, although it will be U.S. CPI data (and the latest BoC decision) that garners more attention.
  • On the supply front Germany will return to the market on with E5bln of the new 2.60% Aug-33 Bund on offer. Elsewhere, Portugal will also come to the market with a 6/12-year OT auction for a combined E0.75-1.00bln. On offer will be the 1.95% Jun-29 OT and the 0.90% Oct-35 OT.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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