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Focus on Spanish and French supplies

BUNDS

A fairly tamed open for Bund, albeit underpinned, with continuation lower in Equity futures.

  • Another light day on the data front, and focus turns to heavy supplies, with Spanish 2023/2021/2041/2050 and French 2023/2026/2028.
  • Should keep upside in Govies limited on delta hedging.
  • Few ECB speakers are also scheduled, with Rehn, Guindos and Muller.
  • German curve is bull flattening with the longer end outperforming
  • 5/30s is trading at level seen on 28/08 at 62.34

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