Huge Month End for Europe

A fairly lighter session for Bund overnight, as desk takes a breather after a super busy week.

• Medium, longer term outlook is unchanged, with risk to the downside (higher Yield).
• But very short term, today, we have a massive Month End extensions for Europe and the UK at least.
• Although, some of the bids were seen as corrective yesterday, it can't be ruled out, that some FM front running may have been in play.
• Volumes have picked up, and counterparties (buyers/Sellers) have met their match, hence big volumes and more limited ranges, in turn difficult to ascertain how much of Month End, (when matured Bond leave the index, and newly or tapped are added back), has been done.
• Expect these type of flow to hit going into 16.15BST/11.15ET.
• Bund yield initial target is back at circa -0.18% (~169.50) which we tested this week, further out sees -0.146%, equates to the 168.94 area.
• US treasuries eye 1.59% next, ahead of the big one at 1.785%
• Today, we have a few data to take down, France Portugal, Italian CPIs, German regional and National CPI, US GDP, Core PCE but will be 3rd reading. MNI Chicago PMI.
• SPEAKERS: We have another packed session, but unlikely to learn anything new.