June 06, 2024 06:24 GMT
An ECB rate cut is widely expected
BUNDS
- Although Bund is showing in the red going into the Cash open, the contract remains close to the next resistance noted at 131.55, did print a 131.58 high Yesterday, following overall disappointing US Data this week, although ISM Services and Price paid was more mixed Yesterday.
- The German Factory order miss was worth just a 10 ticks gains, that quickly faded, a fairly subdued move for the German 10yr Bond.
- Resistance remains at 131.55, followed by 131.75, while support are also unchanged, at 130.83, followed by 130.56, although did print 130.50 low Tuesday.
- Today's notable Data/event sees, UK DMP CPI/BOE Decision Panel survey, and US IJC, but the main focus will be on Europe and the ECB, which is a expected to cut its rates by 25bps.
- A NO cut from the ECB today, would put its credibility and its messaging under real scrutiny.
- MNI has recorded 17 different policymakers indicating that a June cut was on the cards.
- SUPPLY: Spain 3s, 7s, 30s, plus 2039 linker, France 10s, 15s, 30s.
- SPEAKERS: ECB Lagarde's presser.
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