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ALL EYES on US CPI

BUNDS
  • German final CPI came inline with expectation on the Cash open, so limited impact into the Bund contract, with ALL EYES on the US CPI today.
  • A tight overnight session, but it remains near the December low.
  • Support comes at 139.85, while resistance moves down to 140.70.
  • Today sees, Italian IP, German ZEW, and the awaited US CPI, and real earnings.
  • BOE releases financial stability report.
  • SUPPLY: Italy 2024 (equates to 11k short BTP), 2026, 2029 (equates to combined 28.3k BTP) should weigh into the bidding deadline.
  • US also sells $18bn of 30yr reopening.

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