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***Bunds are stabilising. Early price.........>

BUNDS: ***Bunds are stabilising. Early price action was cash-led but stop-losses
really fired off rapidly in the price ramp up. Roughly 55k contracts went
through between 08.03BST and 0821BST.
- Hearing those buyers now looking to exit in the low 161.90s.
- However, the Bund has stopped short of this level.
- The initial buying was said to have been op the back of the Reuters article
quoting 5 people familiar with discussions that the ECB is honing in on a 9
month QE extension. Following Peter Praet's guidance that the length of the
programme is more important than the size because it delays the start of rate
hikes, market contacts talk of little resistance to buying today.
- Also, there is a E16bln Obl redemption today and generally benign issuance
outlook leading into the ECB meeting in two weeks time.
- Others report of pre-positioning ahead of US CPI, seeing asymmetry given near
fully priced December Fed hike.

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