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Day ahead

BUNDS
  • A fairly tight range for Bund overnight, in lighter volumes.
  • Medium, longer term outlook is unchanged, with risks tilted to the downside.
  • Pointed out yesterday at the TYZ1/Bund spread, and although we are flat on the Bund cash open, the spread is above the initial resisted noted at 187.0889bps, and widest since mid April
  • Technically, support in Bund is seen at 170.22 (-0.211% Yield), and resistance moves down to 170.87 initially.
  • Above the latter, sees 171.44 High Nov 9 and the bull trigger
  • We have very little left on the data front, EU CPI will be final reading.
  • SPEAKERS: ECB Schnabel, BoE Mann, Fed Williams, Bowman, Mester, Daly, Waller, Evans, Bostic.
  • ECB release Financial stability review.
  • SUPPLIES: German EU1bn 2052 (Equates to 7k Buxl or 20k Bund). US 20yr will be in focus given the last poor long 30yr Auction

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