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Early focus is on Supply

BUNDS
  • Early focus is on supply: A tight 26 ticks range bound session for Bund overnight, with the contract trading within last week's wider range and near yesterday's low, as desks have their attention on European CPIs, starting on Thursday.
  • Early bid in equities, has helped the contract close the small opening gap down to 136.25, and broke yesterday's low at 136.17, while just short of 136.00, printed a 136.03 low, on the cash open.
  • Support in Bund is seen towards 135.80, while resistance comes at 136.98.
  • Today, sees Italy consumer confidence, US prelim Wholesale Inventories as the Data releases.
  • SUPPLY: Netherlands 2052 (equates to 9.34k Buxl), Italy 2024, 2025 (equates to combined 31.7k short 2yr BTP) should weigh into the bidding deadline, plus Italy 2033 linker.
  • German 2yr Schatz EU5.5bn (equates to 51.9k Schatz) should weigh. US sells $43bn of 5yr Notes.
  • SYNDICATION: EU 2048 green Bond.
  • SPEAKERS: ECB Lagarde, Rehn, Muller, Vasle, de Cos, Makhlouf, Nagel, Villeroy, BoE Bailey, BoE Barr.

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