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Drifting lower on the Cash open

BUNDS
  • A tight low volume traded range overnight for Bund, and despite seeing a small lower opening gap, and the contract trading in the red into the Cash open, the 10yr Yield remains at its lowest level in a Year.
  • In terms of technical, initial resistance is at the 138.79/138.84 area.
  • Further out, a clear break through the 139.00 Psychological level, opens to 139.39 3.764 proj of the Nov of the 13 - 17 - 24 price swing, but more importantly ~140.14.
  • Small support comes at 138.39.
  • Today out of of Europe, sees Italian Retail sales, and out of the US, includes IJC and prelim Wholesales Inventories.
  • SUPPLY: US Sells $40bn of 7yr Notes.

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