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Better bid on the open

BUNDS

Bund stays better bid since the cash open, helped by the overnight risk off tone, after the CBIRC said that the were worried of potential bubbles.

  • Most of the focus remains on curve play, and 5/30s remains flat on the margin this morning, albeit leaning flatter.
  • Most investors will look at rolling their positions this week, ahead of expiry Monday
  • Focus today, sees German unemployment and EC prelim CPI.
  • On the speaker front, ECB Panetta, and for the US, Fed Brainard, Daly.
  • SUPPLIES: Austria 5, and 10yr, but tiny, so don't expect much impact. (equates to <10k Bund)

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