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EU GDP and US CPI are at the forefront

BUNDS
  • A very tight overnight 7 ticks range for Bund pre Cash open as the Street awaits the main event of the Week, the US CPI.
  • Post Cash open, the contract has gained a few ticks to extend the early range to 17 ticks, and now just trades closer to Yesterday's mid range.
  • Although Bund printed a 130.23 low on the US PPI release, initial support moves down to 129.94 (gap).
  • Small resistance moves down to 131.13, followed by 131.40 and 131.87.
  • Today sees, France final CPI, EU prelim GDP, US retail Sales, but the main focus will be on the US CPI.
  • SUPPLY: UK £3bn 2033 (equates to ~21.7k Gilt) could weigh, German 2053, 2054 (equates combined 14.7k Buxl) should have limited impact.
  • SPEAKERS: ECB Rehn, Muller, Villeroy, Makhlouf, Fed Bernanke testifies on BoE, Fed Barr (testifies before House Committee), Kashkari, Bowman.

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