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Early focus on Supply

BUNDS
  • A tight range for Bund, but Yield are elevated across the board. US 10yr printed a fresh 16yr high overnight, and Bund, although Yield is not yet quoted, will be trading above 2.80%, this equated to 128.92 Yesterday.
  • OAT has so far found some support ahead of the 3.40% high in Yield, equated to 123.25 Yesterday, but only managed a 123.37 low overnight.
  • Bund is finding a small bid, helped by a 3k buyer in TYZ3, albeit still trading in 20 ticks for the German contract.
  • There's no tier 1 data for today, and early focus in Europe will be on supply.
  • SUPPLY: Netherlands 10yr (equates to 19.5k Bund) should have limited impact on the contract, Italy 2yr (equates to 25k 2yr short BTP) could weigh, plus Italy 2029 and 2041 linkers, won't impact BTPs.
  • UK 10yr (Equates to 19k Gilt) could weigh. Germany 5yr Bobl (Equates to 34k Bobl), should weigh. US sells $48bn of 2yr Notes.
  • SPEAKERS: ECB Lane, Simkus, Muller, Holzmann, Fed Bowman.

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