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Focus remains on Supply

BUNDS
  • A lighter overnight session for Bund, 21 ticks range in a more subdued volume session pre cash open.
  • The contract still trades closer to its 1 Month low (since 13th Dec), but supports are untested and remain at 135.06 followed 134.87, unchanged for this week.
  • Resistance is at 135.89, followed by 136.25.
  • There's no real tier 1 data out of Europe, French IP and Italian Retail sales shouldn't move the needle, and on the other side of the Atlantic, US Wholesales will be final reading.
  • SUPPLY: Focus will again be on Supply and Corp Issuances: UK £4bn 2027s (equates to 12.4k Gilt) should have no impact. German EU5bn 10yr Bund (equates 40.7k Bund) should weigh. US sells $37bn of 10yr reopening.
  • SYNDICATION: Spain and Estonia, and expect another busy day of Corp deals, with Companies taking advantage of the quieter risk events sessions ahead of the US CPI Tomorrow.
  • SPEAKERS: ECB Guindos, Schnabel, de Cos, BoE Bailey, Breeden, Wilkins, Hall testify to Parliament, US Fed Williams.

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