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Heavy supply keeps the lid on Govies

BONDS
  • Heavy Italian supply is keeping the lid on Govies, but a very tight range for the BTP contract, 37 ticks is the smallest range since 2021, and one of the smallest in the last 540 sessions, with only 8 sessions that have seen smaller ranges.
  • Despite the tighter-ish range, Bund has still traded in a 246 ticks range this week, volume did pick up since Tuesday for the German contract.
  • European desks await Friday with French prelim GDP/CPI, Spain prelim GDP/CPI, German prelim GDP, Regional/National CPI, Italian prelim GDP, Portugal prelim GDP/CPI, EC advance GDP.
  • And out of the US, PCE core deflator, MNI Chic PMI, final Michigan.

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