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Early focus on German supply

BUNDS
  • Bund remains at the lowest part of its past 11 sessions range, albeit in a tighter range overnight with the street awaiting on the US CPI Thursday.
  • Next support is still at 135.65 (76.4% retracement of the Oct 21 - 28 bull phase).
  • Below the latter, opens to the 2.40% Yield which equates to 135.36.
  • Small resistance moves down to 136.82.
  • Today sees, Italy/EU retail sales, and no notable data out of the US.
  • SUPPLY: Netherlands EU2.5bn 10yr (equates to 16k Bund), Austria 2028, German EU6bn 2yr Schatz (equates to 63k Schatz), should weigh into the bidding deadline. US sells $40bn of 3yr Notes.
  • SPEAKERS: ECB Nagel, Wunsch, SNB Jordan, and BoE Pill.

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