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GDP and supplies the early focus

BUNDS
  • Bund is seeing small selling since the cash open, but the contract remains well within yesterday's range.
  • Bund has pretty much closed the FOMC sell off yesterday afternoon, printing a 170.43 high versus 170.47/170.49 level traded going into the FOMC.
  • The early French GDP release, was a beat and shown that France has been one of the more resilient EU countries in 2021.
  • Today's notable release include The German and Spanish GDPs, and on the other side of the pond, US PCE core deflator.
  • US Michigan will be final reading.
  • SUPPLIES: Italy EU3bn 2026 (Equates to ~53k Short BTP, or 11k BTP), EU3.5bn 2032 (equates to 27k BTP) should keep the lid on BTP.
  • There's also a 2029 linker, won't impact the contract.
  • EARNINGS: Caterpillar, Chevron.
  • RATINGS: Fitch on Hungary and Ireland, Moddy's on Finland Lithuania, DBRS on Austria, and Estonia.

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