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Heavy German supply

BUNDS
  • Bund hovers just above Monday's low that was 133.89, overnight and into the cash open.
  • Nonetheless, initial support is at 133.50, followed by 133.10.
  • Resistance is at 134.75.
  • Today, sees FR/GE/EU/UK/US prelim services PMIs.
  • SUPPLY: Netherlands EU2.5bn 2028 (equates to 20.9k Bobl) could weigh given the low liquidity, German EU6bn 2yr Schatz (equates to 64.5k Schatz (should weigh into the bidding deadline).
  • UK 2051 Linker, won't impact Gilt, US sells $42bn 2yr Notes.
  • SYNDICATION: Italy 2039.
  • SPEAKERS: ECB Guindos, Muller, Villeroy, Nagel, BoE Bailey, Pill, Mann, Tenreyro (testify), Haskel (Fed even), Fed Logan (remarks on technology-enabled disruption).

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