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Focus on Italian supply before ECB

BUNDS
  • Bund trades close to yesterday's mid range overnight and going into the cash open, but has found a small bid on the cash open, ignoring the German GFK small beat, not a known market mover.
  • Support is unchanged at 132.60, while resistance moves down to 133.77, 134.01 and 134.32.
  • Again there's no real tier data out of Europe, Italy Consumer Confidence, is unlikely to be a big mover ahead of the {eu} ECB, when a 25bps hike will be expected.
  • There'll be more focus on the US, with prelim reading for Durable goods and Wholesales inventories, 2nd readings for GDP and Core PCE price index, as well as IJC.
  • SUPPLY: Early focus will be on the heavy Italian supply: Italy 2028, 2032, 2033 (equates to combined to 61.6k 10yr BTP) should weigh, plus 2028 floating bond, but the latter won't impact BTP, US sells $35bn of 7yr notes.
  • SPEAKERS: ECB Lagarde's presser.

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