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Futures resume to the downside

BUNDS
  • Bund broke through the next resistance in Yield term yesterday, noted at 2.436%, and given where futures trades overnight and going into the Cash, Yield should remain above that level when it is quoted, equated to circa 132.54.
  • Next upside target in Yield will be at the 2.50%, around 131.90.
  • Resistance moves down to 132.71, followed by 133.40.
  • It is a busier day ahead, with prelim PMIs, EU final CPI, and US IJC, the notable Data.
  • Today also includes the ECB's Account of the January meeting.
  • SUPPLY: US Sells $30bn of 30yr TIPS (won't impact Govies).
  • SPEAKERS: Fed Jefferson, Harker, Cook, Kashkari.

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