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Heavy Italian supply and US CPI at the forefront

BUNDS
  • Bund stays elevated led by safe haven this week, tested Yesterday's high on the cash open of 129.99, printed a 130.07 high, just short of the 2.70% level in Yield.
  • Next immediate resistance is circa 130.29,which equated Yesterday to 2.668% the 61.8% retracement of that Sep/Oct period.
  • A clear break through the latter, opens to 130.84.
  • Support moves up to 129.47 followed by the 129.00 figure.
  • Today sees, Portugal final CPI, US CPI, real average earnings, IJC.
  • ECB release accounts of their last meeting.
  • SUPPLY: HEAVY Italian supply: Italy 2026 (equates to 33.6k short 2yr BTS or 8.5k BTP), Italy 2030, 2035, 2043 (equates to combined 46.1k BTP) should weigh. US Sells $30bn 30yr reopening.
  • SPEAKERS: ECB Elderson, Villeroy, Holzmann, Knot, Vujcic, Vasle, Panetta, BoE Pill, Fed Logan, Bostic, Collins.

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