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Focus on supplies in early trading

BUNDS

Bund trades in tight range since the cash open, albeit underpinned, with Estoxx (VGM1) paring small gains..

  • German 5/30s lean bull flatter, but within April's ranges (86.443-89.097).
  • A fair amount of Supplies from Spain and France this morning should keep the lid on the contract into the bidding deadline in early trading.
  • But vaccination pace concerns and continuing spike in cases should keep safe haven favoured short term.
  • No tier 1 data for today, we get construction PMI for Germany and the UK, ECB minutes, but unlikely to move the needle.
  • No ECB speakers are scheduled, and on the other side of the pond, Fed Bullard and Kashkari discuss Economy, while Powell Takes part in IMF panel.
  • SUPPLIES: Spain 2026, 2028, 2044, and France 2029, 2031, 2052.

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