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Early focus is on the heavy Italian supply

BUNDS
  • Bund has drifted back within Monday/Yesterday's mid range, as we go towards Friday, which is packed with European data.
  • Support moves up to 134.16 area followed by 133.88 initially.
  • Resistance moves down to 135.28.
  • This morning sees, Italian Consumer/mfg confidence and final EC Consumer Confidence, but these should have limited impact, and focus is on the US, with US GDP, Core PCE.
  • SUPPLY: Early focus is on Italy in Europe, with some quite heavy supply for the country, Italy EU2.5bn 5yr, EU5bn 10yr (equates combined 65.5k BTP) will weigh into the bidding deadline, plus 2028 floating (won't impact BTP).
  • On the other side of the Pond, US sells $35bn 7yr notes.
  • SPEAKERS: ECB Panetta presentation on digital Euro.

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