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Focus on supply today

BUNDS
  • Very little change for Bund overnight and going into the Cash open, with the contract unmoved following the German IP miss, although the data did see a 1 tenth revision.
  • Support held Yesterday and remains at 135.06, followed by 134.87.
  • Small resistance moves down to 135.89, printed a 135.88 high overnight, followed by 136.25.
  • There's very little in terms of Tier 1 data for today, Italian and EU employment are unlikely to move the needle, and out of the US, trade balance should have limited impact, with the main focus on the US CPI this week.
  • SUPPLY: Focus will be on supply, Netherlands 2030 (equates to 12.6k Bund) should have no impact, Austria 2033, 2053, UK £2.25bn 2043 (equates to 32.3k Gilt) should weigh into the bidding deadline. US sells $52bn of 3yr notes.
  • SYNDICATION: Italy, Belgium, and expect for more Corporate deals today.
  • SPEAKERS: Fed Barr, ECB Villeroy.

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