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Italian supply, the early focus

BUNDS
  • A light overnight session for Bund, just trading 2.5k lots pre cash open.
  • The contract is close to flat but remains underpinned, bid, as Europe falls into contraction territory.
  • In terms, of technical most will look at Friday's high at 155.16 as initial resistance, but initial resistance area is seen at 155.16/155.27.
  • Small support moves up to 154.38.
  • There are no tier 1 data for the session, with most investors focused on the Fed.
  • SUPPLY: Early focus will be on the Italian EU2.5bn 2024 (Equates to 18.5k short BTP). Italy also sells 2033 and 2041 linkers, won't impact Bund.

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