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Focus turns to the US AHE

BUNDS
  • Yesterday saw record volumes for the March expiry in Bund, BTP, OAT and Gilt futures.
  • In rates markets the Euribor strip from June 2023 to December 2024 saw all time record volumes going through for those expiries.
  • First thing that stood out pre Bund cash open, was ERU4 and ERZ4 trading more volume than the Bund pre open.
  • The volume in rates is mostly related to the ERU4/ERZ4 spread, trading ~5.7k outright and also likely done on legs, to the sell side.
  • Resistance in Bund is at 139.86, but better is seen towards the 139.99 area.
  • Small support moves up to 138.80 initially.
  • Today, out of Europe, includes services PMIs, but final reading for France, Germany, EU, UK and US.
  • ECB survey of Professional forecasters.
  • Main focus in on the US AHE, and NFP.
  • US ISM services is also included.
  • SPEAKERS: BoE Pill, ECB Visco, Fed Daly.

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