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Central banks are at the forefront

BUNDS
  • A light overnight session for Bund, but the contract tested next yield resistance at 0.05% yesterday.
  • Quick heads up on the cash open, is the German 5/30s dipping through yesterday's low and flattest level since March 2020.
  • Resistance in yield is still eyed at 0.05% (printed 0.056% high yesterday).
  • Desk also noted Schatz 2yr trading above depo.
  • Focus today is on the BoE and ECB, with a hike expected in England. On the data front, today include services PMI, with some Final readings in Europe and the US.
  • Factory orders and Durable goods are also the noted releases.
  • SUPPLIES: Spain 3, 10, 15yr, plus linker, and France 10, 22, and 30yr, should keep the lid on Govies in early trade.
  • EARNINGS: Conocophilips, Elilily, Biogen, Amazon, News Corp and Ford

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