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Italian supply and the BoE in focus

BUNDS
  • Another 14 ticks overnight trading session for Bund, but the contract trades at the upper range of this week's range following the US CPI yesterday, and is founding a small bid on the cash open to test the 136.00 handle.
  • Initial resistance at 136.21 remains, while support moves up to 135.42.
  • Today sees, Portugal final CPI, and US PPI.
  • Most of the focus will be on the BoE when a 25bps hike is expected.
  • SUPPLY: The early focus is on the heavy Italian supply, EU3.5bn 2026 (equates 44.6k short 2yr BTP or 10.6k BTP), EU3.75bn 2030 and EU1.5bn 2043 (equates combined to 33.7k BTP) should all weigh.
  • US also sells $21bn of 30yr Bonds.
  • SPEAKERS: ECB de Cos (x2), Schnabel, Guindos, BoE presser, Fed Kashkari, and Waller.

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