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Better offered since the open

BUNDS

EGBs are under early pressure on the open, Bunds sees better selling since the cash open, brushing aside the German GFK data miss (rarely a market mover).

  • Price action drags BTP lower, and the BTP/Bund spread moves above 110 handle, now at 111.75.
  • Immediate upside target comes at 113.804 (02/02 high).
  • No tier 1 data for today, US Wholesale Inventories the most notable one.
  • Of course focus will be on the FOMC, but most investors see the June meeting as they key one.
  • SUPPLIES: Netherlands EU2.5bn 5yr (Equates to 21k Bobl), and German EU2.5bn 15yr (Equates to 25k Bund)
  • US Earning season continues which today includes Apple, Ebay and FB

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