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Focus on Supply ahead of Lagarde/Powell

BUNDS
  • An ok overnight session for Bund in terms of volumes.
  • The contract trades circa yesterday's mid range, and 80 ticks off yesterday's high, on Macron beat, ECB Wunsch hawk statement (Note that he's a leaning Hawk), and positioning ahead of Lagarde/Powell.
  • Technically, there's a small upside gap at 154.68 vs 154.66 high print overnight.
  • Support is seen at 153.65, 153.25 and more importantly the 1% yield level, circa 152.71.
  • There's very little in terms of market moving data. EU CPI will still be watched, but Final reading for today.
  • SUPPLY: Early focus will be on supply, with Spain 2025, 2032, 2048, France 2025, 2027, 2030, plus Linkers.
  • These should limit early upside. Linkers won't impact. US $20bn TIPS.
  • SPEAKERS: All the focus will be speakers today, with BoE Mann, Bailey, ECB Lagarde and Powell (IMF panel on Global Economy).
  • EARNINGS: Philip Morris (pre Market)

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