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Focus on supplies and syndication this morning

BUNDS

Bund are underpinned on the open, despite some extension higher in Equity futures on the European opening bell.

  • Decent volumes are again going through in the first 10 minutes of trading, but this time, mostly spread related
  • Sep/Dec has traded 9k outright so far, and rolling position will dominate, with last trade next Tuesday.
  • Very little on the data front, Spanish Unemployement and EC PPI are set for release.
  • Some focus on German supply, selling EU4bn 0% Bobl (Equates circa 34k Bobl, 13k Bunds).
  • BTP are outperforming Bund, and as such, move 1.3bp tighter on the open.
  • German curve is bull flatter on the margin, but trading at mid range.

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