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German supply the early focus

BUNDS
  • A tight 20 ticks overnight range for Bund going into the cash open, with most investors awaiting on the US CPI tomorrow.
  • Main driver for the week, and until Thursday has been the heavy supply, Auctions and Corp issuances, have kept the lid on the upside.
  • Initial support in Bund yesterday was at 136.05, and this has held yesterday, printing a 136.04 low.
  • Resistance remains at 137.47.
  • There's no tier 1 data for the session, Spanish IP and Italian retail sales are the notable releases for the European session, and nothing of note out of the US.
  • SUPPLY: Early focus will be on the German EU5bn Bund (equates to 37.6k Bund), should weigh into the bidding deadline.
  • US sells $32bn of 10yr reopening.
  • SPEAKERS: ECB Holzmann, Villeroy, Rehn, de Cos.

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