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Heavy supply the early focus

BUNDS
  • A decent overnight range session for Bund, and volumes have also clearly picked up this week, after the fast market session yesterday. Bund is back to flat, but German and EGB Yields remains at multi year highs.
  • Rates future, now fully price 150bps for December.
  • German ZEW is the only data release left out of Europe.
  • On the other side of the Pond, sees US PPI as the only notable release.
  • SUPPLY: Early focus will be on heavy supply, with Netherlands EU5bn 2040 (equates to 48k Bund or 17.7k Buxl), Italy EU2bn 2025 (Equates to 23.1k Short BTP), Italy EU1.5bn of each 2049 and 2052 (equates to combined 55.2k BTP).
  • Germany Schatz EU5.5bn (Equate ~50k Schatz).
  • SPEAKERS: ECB Schnabel.

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