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Heavy supply and US CPI the main focus today

BUNDS
  • Bund remains unchanged so far this week, as desks await the main Event today, the German final CPI was also inline on the cash open.
  • The contract closed the 132.52 gap, printed a 132.55 high yesterday, while the initial support seen at 130.74, Monday's low also held, printed a 130.78 low Yesterday.
  • These levels are still the initial resistance/support.
  • Today, the BoE releases credit conditions and bank liabilities, but all the focus is of course on the US CPI.
  • SUPPLY: Heavy Italian supply: UK £3.75bn 2031 (equates to 26.2k Gilt) could weigh, Italy 2027s (equates combined 43.2k Short 2yr BTP), 2031s, 2043 (equates combined 49.1k BTP) will weigh. US sells $22bn 30yr reopening.
  • SPEAKERS: Fed Bostic, Musalem.

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