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Find a bid on the cash open

BUNDS
  • Bund finds a small bid on the cash open, as Equities offers are going through.
  • EGBs came under some pressure yesterday, led by the BTP on technical breakouts as oppose to macro news or fundamentals.
  • Long were trimmed (few stops triggered) which helped exacerbate the price action.
  • We have very little in terms of market moving data out of Europe, and out of the US, sees GDP and Core PCE, but these are second readings, so unlikely to move the needle.
  • On the margin IJC will be more of interest, ahead of the awaited Jackson Hole tomorrow.
  • SUPPLIES: Italy EU2.75bn 2024 (equates to 5.3k BTP, or 28.7k BTPS), plus a EU1bn 2026 Linkers, which won't impact BTP.
  • US Sells 7yr note
  • SPEAKERS: We have few speakers on the calendar, ECB Rhen, Villeroy and Schnabel, and ECB also publish their minutes from the 21-22 July meeting.

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