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Fall lower post cash open

BUNDS
  • It was a tight trading range for Bund pre cash open, but the contract got hit in 33 ticks from 136.10 to 135.77 on the UK CPI beat initially.
  • The support seen at the 135.76/135.73 (Last Friday and Thursday's low), has been broken, with further continuation post UK inflation, and the contract printed a 135.59 low.
  • The shorter end 2yr and the 3 Months Euribor lead lower, and the TED spread goes offered (ERU3 vs DUM3).
  • Next support in Bund is at 135.13.
  • There's no tier data left for the session, and focus will be on speakers, the FOMC and presser.
  • SUPPLY: German EU5bn 10yr Bund (Equates to 37.8k Bund).
  • SPEAKERS: ECB Lagarde, Villeroy, Lane, Rehn, Wunsch, Visco, Panetta, Nagel, US Fed Powell.

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