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Focus turns to PMIs

BUNDS
  • Another limited overnight session for Bund, with a lack of new macro news, and desks awaiting the main data day for this week, besides the UK CPI release, Services PMIs.
  • UK Retail sales missed consensus on the margin, but also saw some mixed revisions, on the whole the pound saw a 13 pips swing and Bund 10 ticks, but the contract trades within a 23 ticks range post cash open.
  • Resistance comes at 134.26, followed by 134.50, while support is at the 133.49/133.42 area.
  • Main focus for today is on FR/GE/EU/UK/US prelim services PMIs.
  • SUPPLY: Italy EU2.5bn 2yr (equates 20.7k short 2yr BTP) could weigh into the bidding deadline, plus 2029 linker (won't impact BTP).
  • SPEAKERS: ECB Guindos (x2), Vujcic, Elderson, Fed Cook.

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