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Another busy day ahead

BUNDS
  • Despite some swings during the FOMC last night, Mr Powell has kept markets steady overall, signalled that he was open on cutting rates, but pushed back on March, needs to see more.
  • Bund, Treasuries and Gilt all ended at their top of the ranges, mainly with some front running in Month end extensions, which also started with lower inflation in Europe, and ended at their highs post FOMC.
  • Overnight Govies have seen small moves lower on the overnight opens, Bund and Tnotes are now Hovering at their lows into the EU Cash Govie open.
  • Resistance in Bund is still at 135.99 next, while support moves up to the 135.00 figure.
  • It's another busy day in the Data front, Global mfg PMIs, but final readings for FR/GE/EU/UK/US, EU/IT prelim CPIs, UK DMP expectations, US IJC, ISM.
  • And of course the BoE and Presser.
  • SUPPLY: Spain 5s, 7s, 10s, France 10s, 15s, 20s, 30s, should weigh on Govies into the bidding deadlines.
  • SPEAKERS: ECB Centeno, Lane, BoE Bailey.

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