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Early focus is on supply ahead of the US CPI

BUNDS
  • Just a 12 ticks overnight range for Bund, and up to a 13 ticks range on the cash open, as Investors await the US CPI release.
  • German final CPI came inline so no real impact on the contract.
  • Yesterday's noted support at 132.27/132.20 held, as desks consolidated some of Friday price action Yesterday afternoon, ahead of Today.
  • Support is still at 133.20, followed by 132.76.
  • Main initial resistance remains at 134.18.
  • Today sees, Portugal final CPI, and of course the US CPI.
  • SUPPLY: Early focus in Europe will be on supply, Netherlands €2.5bn 2030 (equates to 12.6k Bund) shouldn't have an impact, UK £3.75bn 2034 (Equates to 33.7k Gilt) should weigh, German Schatz €4.5bn (equates to 42.4k Schatz) should weigh into the bidding deadlines, US Sells $39bn of 10yr reopening.
  • SPEAKERS: BoE Mann, Bailey.

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