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Bunds a bit higher than pre-data - but away from their post-data peak

BUNDS
  • Bunds have moved off their highs which were seen just before we had seen the data (reaching 137.96 according to Bloomberg data versus around 137.60 pre-6:30GMT/7:30CET).
  • At the time of writing, Bunds are still a bit higher overall than pre-data, however, at 137.70.
  • Looking more into the details of the number, the core NRW CPI print (non-HICP) slowed to +3.4%Y/Y in December 2023 from +3.7%Y/Y in November 2023.
  • Base effects from energy subsidies in the December 2022 data fuelled an increase in the headline Y/Y rate in today's print which rose from +3.0%Y/Y in November to +3.5%Y/Y in December.
  • In spite of this we still saw a sequential decline in the M/M rate of -0.1%M/M (the third M/M fall in a row from NSA data).

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