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FOMC in focus

BUNDS

Bund start the session once again better bid on FTQ, and we once again test the initial yield support at -0.442%.

  • We did print a -0.449% and a 176.42 high in Bund on Monday.
  • Further upside traction in Bund, will have some desk looking at -0.500% in yield, which today, reference 176.37, would equate to 177.24.
  • Looking at MNI technical, resistance comes at 176.42 High Jul 26, 176.64 High Feb 11, and 176.79 1.50 proj of the May 19 - Jun 11 - Jun 22 price swing.
  • No tier 1 data for Europe are scheduled, and on the other side of the pond, US Wholesale Inventories is the notable release.
  • Most of the attention is on the FOMC, but unlikely to change path at this meeting.
  • SUPPLIES: German EU2.5bn 15yr (Equates to 23.7k Bunds)

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