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Day ahead

BUNDS
  • A light overnight session for Bund, trading at mid range in early trade.
  • Nonetheless, the contract still trades near multi year low, after printing 158.73, with a 0.55% yield high print yesterday.
  • Bobl 5yr traded at highest yield sine 2014 and 2yr Schatz since 2015.
  • Receiving interest, with cash parked into yield, has provided a short term base.
  • Market remains very sensitive to Eastern Europe headlines.
  • Further downside traction for the German Bund , would eye the 0.60% yield level, which equates circa 158.18.
  • There is no notable market moving data for the session, Spain GDP will be final reading as well as US Michigan sentiment.
  • SUPPLY: Italy 2 and 10yr.
  • SPEAKERS: Fed Williams, Barkin, Waller, but unlikely to learn anything new

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