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CPIs are at the forefront

BUNDS
  • Bund saw a very tight overnight range in low volumes as the street gears up for more CPI releases.
  • The contract did go bid on the German retail sales miss, although the latter was revised higher.
  • Given the low volumes that has gone through, more likely some algo reaction as oppose to RM play.
  • Support remains at 134.80, did print a 134.76 low yesterday, but that level has held.
  • Small resistance moves down to 135.80.
  • Main focus is on the French, Italian, EU and Portugal prelim CPIs.
  • On the other side of the Pond, sees US PCE core deflator, final Michigan.
  • SUPPLY: Belgium 2028 and 2035, but too small to impact Bund.
  • SPEAKERS: ECB Lagarde, Kazaks, Visco, Vujcic, Fed Williams, Cook.

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