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Bear steepening on the cash open

BUNDS
  • Bund sees better selling on the cash open, despite the German data miss.
  • Better bid in the EURUSD likely helping, the latter is driven by broader base USD selling.
  • The 5/30s trade bear steeper and above yesterday's high, but still within the last 9 days range.
  • Some focus on German and UK Construction PMIs, ZEW and EU Retail Sales.
  • Out of the US, sees Services PMI, but final reading, so more attention on the ISM services.
  • SPEAKERS: ECB de Cos, Guindos, Visco
  • SUPPLIES: UK 2031, 2061 (Would equate combined to 63.7k in 10yr Gilt) should keep the lid in early trading, German linkers (won't impact Bund), and Austria 2026, 2031.
  • SYNDICATION France 30yr no grow EU5bn

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