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Inflation is at the forefront

BUNDS
  • ALL EYES on Inflation: Bund gaped lower overnight, a continuation following the CPIs beat yesterday and positioning ahead of the inflation releases for today.
  • Some Economists will now likely see an upside risk to the EU YoY CPI vs median.
  • Technical will see the initial resistance at the 152.50/152.60 gap (printed 152.52 high).
  • Support, is at the 1.093% Yield, which yesterday equated to 152.01.
  • Today sees French, Italian and ALL EYES on the EU CPIs.
  • There's no notable market moving data out of the US.
  • SUPPLY: German EU3bn Bobl (equates to 23.7k Bobl), and heavy supply for Italy, with Italy 2032, 2027 (equates to combined 42.3k BTP), plus 2030 Floating, which won't impact the BTP.
  • SPEAKERS: ECB Villeroy, Visco and Makhlouf.

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