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Close to pre FOMC levels

BUNDS
  • How two sessions of Central Bank changed some of the street outlook, after Fed surprised with a Dovish undertone discussing rate cut in 2024, ECB saw no real change, and no discussions of rate cut next year, at least for now.
  • Investors were looking for the ECB to be the first major CB to cut rates in 2024, which saw European Equities leading higher and Yield leading lower.
  • Yesterday, US NDX was trading short of 100 points off its record high and SPX just 70 points.
  • As such Bund is now close to have reversed the whole of the FOMC Dovish meeting rally, would need a test to 135.66, and to compare that to US Tnotes, the contract would need to see a pullback to 110.29+, now still trading as high as 112.12+.
  • Today sees, prelim Services PMIs, as well as France and Italy final CPIs.
  • SUPPLY: {be} Belgium 2035, 2038, won't impact Bund.
  • SPEAKERS: They will be back at the forefront, today includes, ECB Holzmann, Vasle, Kazimir, Muller, Scicluna, Simkus, Vujcic, Centeno, BoE Ramsden, Fed Williams.

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