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CPIs and supplies ahead

BUNDS
  • Some upside continuation in Bund on the margin, following a really quiet session yesterday, with the UK closed.
  • The Dovish Powell has provided a continued bid in Equities, "cheaper money for longer", and an underlying bid in Govies.
  • Curves lean flatter, and watch for possible bids in Treasuries towards 16.15BST on Month End flow.
  • Extensions are large for the US, and a non event for Europe and the UK.
  • Focus today, is on France, Italy and EU CPIs, French and Italian GDPs will be final readings
  • Out of the US, sees Chicago PMI.
  • SUPPLIES Italy 2026, 2031 (equates combined ~36k BTPs) which should keep the lid on the contract into the bidding deadline. Italy also sell a 2029 Floating Bond, won't impact BTP
  • SPEAKERS: ECB's Holzmann, Knot, Denmark's Callesen speak at conference, and ECB Lane at OECD event

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