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Heavy early supply

BUNDS
  • Although Bund shows in the red, the contract stays within the initial support/resistances mentioned yesterday, with support at 134.09, printed a 134.04 low and 134.95, printed a 134.94 high yesterday.
  • The contract now trades close to that mid range going into the cash open, as investors await European CPIs, starting as off Tomorrow, with German Regional/National CPI, and Spain prelim CPI.
  • Today sees, Italy Consumer Confidence, Canada CPI, US prelim Durable Goods.
  • SUPPLY: Heavy Dutch supply, Netherlands EU2bn 2054 (Equates to 13.2k Buxl) should weigh, Italy EU 2.5bn 2025 (equates to 17.4k 2y BTP), should weigh, plus 2029 linker (won't impact BTP), UK 2033 linker (won't impact Gilt), US sells $43bn of 5yr Notes.
  • SPEAKERS: ECB forum starts today in Sintra, and includes Lagarde, BoE Dhingra, Tenreyro.

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