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Heavy supply and US CPI

BUNDS
  • Bund dips lower on the cash open, helped by the UK Employment data and earnings beat, but the contract trade close to Yesterday's mid range ahead of the awaited US CPI.
  • Small support moves up to 133.91, followed by 133.45.
  • Resistance remains at 134.95.
  • Today sees Spanish final CPI, German ZEW, and the main event, the US CPI.
  • SUPPLY: Heavy Italian and German supply, Netherlands EU2.5bn 10yr (Equates to 19.3k Bund) should have limited impact, Italy EU2.75bn 2026 (equates to 30.2k short 2yr BTP) should weigh, Italy 2030, 2053 (equate combined to (47.7k BTP) should weigh. UK £3.5bn 10yr (equates to 24.2k Gilt) might weigh. German EU5bn Bobl (equates to 47.1k Bobl) should weigh into the bidding deadline, US sells $18bn 30yr reopening.
  • SYNDICATION: German 30yr green bond.
  • SPEAKERS: BoE Greene, Bailey, Dhingra, ECB de Cos.

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