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Focus remains on the 30yr part of the curve

BUNDS
  • Bund saw a small upside opening gap overnight, but the contract stays within Yesterday's range, but underpinned.
  • Initial resistance at 131.82 has so far held, forming a a double top at 131.74, these are still some of the highest levels since mid September.
  • Main focus remains on the longer end and the 30yr, as investors price cuts and more stable longer rate outlook.
  • German 30yr Yield fell short of the 2.700% mark, which equated to 129.90 Yesterday, printed a 129.74 high and a 2.709% low Yesterday.
  • As the longer end leads, the 5s/30s curve will again lean flatter, when Yields are quoted.
  • Although the US are out for Thanks Giving, today sees, prelim services PMIs in Europe, and there will be some interest on the Japan CPI, although the latter is unlikely to really move the needle for the German Bund.
  • ECB minutes ("Account") of October Policy Meeting is also due.
  • SPEAKERS: ECB Makhlouf, Cippollone, Panetta.

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