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Heavy EU Supply ahead of the US CPI

BUNDS
  • Another decent overnight session in Bund, with the contract seeing a 100 ticks spike and hour ago, which seem to have been led by a CS headline founding material weakness in financial reporting, which pushed Equities also lower at that time.
  • The contract remains well underpinned and near session high on the cash open, and desks will look at 137.24, yesterday's high and the highest print since the 3rd February for resistance.
  • But equities (estoxx) has fully reversed the move.
  • Today sees, Spain Final CPI, Italian IP, and the main event, the US CPI.
  • SUPPLY: Heavy supply, Netherlands EU2bn 2027 (equates to 13.8k Bobl), Italy 2072, 2035, 2029 (equates combined 49.7k BTP), 2026 (Equate to 49.9k 2yr BTP). UK 2033 (equates to 23.5k Gilt), German EU5bn Bobl (equates to 42.2k Bobl), should all weigh into the bidding deadline.
  • SPEAKERS: Fed’s Bowman Speaks at Community Bankers Event in Hawaii.

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