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ECB forum on CBs starts

BUNDS
  • Bund is mostly better offered, mostly on the back of US Treasuries.
  • Fed Powell told reporters last night that a decision on taper could come as soon as the next meeting, Brainard, a Dove said that the labour market may soon meet her threshold for scaling back on asset purchases, without giving a date, while Fed Williams, a leaning Dove, sees an argument for scaling back, given the progress in Labour and inflation.
  • Bund outlook remains unchanged with next initial target at the -0.18% yield, which equates circa 169.56.
  • No real tier 1 data once again, focus will be on US Wholesale Inventories.
  • ECB forum start today until tomorrow, so we have another session packed with speakers, which we will have all week.
  • SUPPLIES: Netherlands EU5bn 2029 (equates to 24.6k Bund), UK 2bn 2051 (Equates to 49.6k Gilts) will keep the lid on that part of the duration (30yr), and US $62bn 7yr note

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