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Attention turns to the CPIs

BUNDS
  • Bund is seeing some downside continuation after the contract caught up with Treasuries overnight, gaping 59 ticks on the overnight open.
  • The move in Treasuries was led by the ISM beat yesterday, but the Tnotes (TYM3) is off yesterday's worst level, to trade circa flat going into the European session.
  • Support in Bund moves up to 134.21 initially, while resistance is at 135.01/135.60 (gap).
  • Main focus is on the CPIs, and a busy session on the data front, with Global manufacturing PMIs, but final for FR/GE/EU.
  • EU and Italy CPIs, US JOLTS, Factory Order, final Durable Goods.
  • SUPPLY: Only Bills and Linkers for today, won't impact Bonds.

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