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Focus is on the German 2yr supply

BUNDS
  • Watch Schatz supply: Bund gaped higher overnight, as Equities (Estoxx) gave back all of yesterday's small gains overnight, helped by FRC, did beat expectations, but fell more than 20% post market last night, on report showing that deposits fell by 35.5% form a year earlier, and 40.8% since December.
  • Resistance in Bund moves up to 134.50 initially, while support will be at 133.44 gap followed by the 133.06/133.00 area, managed to print a 133.10 low last week which was also the lowest print since the 10th March.
  • There's no tier 1 data for today and on the margin US Conf. Cons Conf is the notable afternoon release, but data kicks off as of Tomorrow with Australia CPI, Singapore IP for the Asian session and US prelim Wholesales inventories/Durable goods for the EU and the US.
  • SUPPLY: German EU6bn 2yr Schatz (Equates to 64.4k Schatz), should weigh into the bidding deadline. US Sells $42bn of 2yr notes.
  • SYNDICATION: EU 2038 Benchmark, German 10yr Green Benchmark.
  • SPEAKERS: BoE Broadbent.

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