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Attention turns to the US Data

BONDS
  • Some of the pace has picked up in Eurex roll, but mainly in Bobl and Schatz.
  • Looking at the Bund, it suggests around 10% of the front Month volume is spread related, versus around 20% in Bobl and Schatz.
  • Given the high volatility in the front Months, following the European inflations data, this has presented some interest in trading the spreads on legs.
  • Looking at the rolls, these are running below pace, BUT no surprises, there's still plenty of time before expiry next Thursday, and Investors have been focused on the Data releases.
  • German Govies and EGBs are seeing some of their best volumes for this time of day, and the Globe's attention will now turn to the US US IJC, PCE core deflator, MNI Chicago PMI.

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