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Back to pre US CPI level

BUNDS
  • Bund and Tnotes traded back to pre CPI levels overnight, Bund was circa 156.31, and TYU2 119.12+., TYA is 4 ticks short.
  • Bund is through that level on the cash open, while TYU2 still outperforms.
  • Support in Bund is at 156.04, resistance moves down to 157.05.
  • There's no Tier 1 data out of Europe, and focus will be on the US PPI this afternoon, but the latter hasn't been a big market mover of late.
  • SUPPLY: US sells $21bn of 30yr.
  • Tomorrow sees a busier day to end the week, with Swedish CPI, UK GDP, French and Spain final CPIs, US prelim Michigan.

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