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Heavy Italian supply

BUNDS
  • Bund spiked 80 ticks pre cash open, following the much lower German NRW CPI, but the contract fades going into the cash open as Europe comes in.
  • Nonetheless, Volumes have still been on the lower side, which has helped exacerbate the size of the move in Bonds.
  • Resistance moves down to 136.98, and support is still at 135.45, followed by 134.80.
  • Main focus is on German regional/National CPI, Spain prelim CPI, and we also get, Italy PPI, EU consumer confidence, and in the US 3rd reading for GDP/Core PCE.
  • SUPPLY: Heavy Italian supply, Italy 5s and 10s (equates combined to 44.6k BTP) should weigh into the bidding deadline, plus 2029, 2030 floating Bonds (won't impact BTP).
  • SPEAKERS: Fed Barkin, Collins, Kashkari.

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