Futures Little Changed Early On, Supply & Final Eurozone CPI Eyed

Bund futures +19 at 131.92 (131.84-132.10 range).

• Last week’s move lower appears to be a technical correction, however, a continuation lower would expose key support at the Feb 29 low (131.23).
• Initial firm resistance to watch is at the 50-day EMA (133.16). A clear break of this average would be seen as a bullish development.
• The announcement of BoJ JGB purchases helped core global FI markets away from lows during Asia-Pac hours.
• That came after speculation re: the need for higher for longer U.S. interest rates and the latest round of hawkish BoJ sources stories weighed on Tsys and JGBs in very early trade.
• Weekend ECB speak did little to change the narrative, focus remains on June re: the timing of the first cut (~21bp of easing priced through June at present).
• Final Eurozone CPI data headlines the regional calendar today.
• Comments from ECB’s Centeno are due later, although the setting reduces the chances of market-moving headlines.
• Belgium will come to market with EUR3.3-3.9bn of 10-, 15- & 30-Year paper, while Slovakia will auction 3- to 11-Year bonds (we pencil in (EUR500-600mn).
• The EU has announced it will hold a syndication this week, eyes open for any announcement there. We have pencilled in a transaction size of EUR7bn.