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Day ahead

BUNDS
  • An incredibly busy session yesterday, with desks taking a breather overnight and the main stories turned squarely on yields as the BoE and the ECB turned more hawkish driven by inflation spikes (energy prices).
  • Decent volume on the cash open doubling the overnight volume on dip buying and short covering, fading off the 0.152% 10yr yield.
  • Bund has fell a whopping 842 ticks since late December, while yield spiked over half a percent.
  • There is a few data on the calendar, but the street has already brushed aside the German factory order's beat, and it is very likely that investors will look through the US NFP, with ALL EYES turning to the US CPI on the 10th February.
  • Near term attention is also on Central Bank speakers, given the latest rhetoric.
  • SPEAKERS: BoE Bailey, Broadbent, Pill and ECB Villeroy

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