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Bull flattening

BUNDS

Bund sees better buying since the cash open, albeit still in fairly tight range (169.12-169.34).

  • Next resistance moves down to 169.47.
  • Curve extends bull flatter, led by Treasuries, on safe haven flow, despite a mix session in Equities overnight.
  • Asian Covid concerns keeps Equities gains limited in Asia Pacific hours.
  • The pullback in Bund is seen as more corrective, as we unwind some of last week's sell off.
  • This morning sees Italian CPI, but will be final reading, so unlikely to move the needle.
  • SPEAKERS: US Fed Clarida, Kaplan

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