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Large Italian supply

BUNDS
  • Despite the Bank Holiday yesterday, Bund saw a decent 135 ticks range to the upside, with the 10yr Yield resistance noted at 2.557% (10th March) still holding Yesterday, equated to 132.84 on Friday.
  • As mentioned, there's few things to focus on this week, Month End, which may have been at play Yesterday, are decent extensions for the EU and the US, but a non event for the UK, and besides data, volumes will be dominated by rolling positions into the September expiry, and the pace should pick up into the end of the week and ahead of expiry on the 8th June (Eurex rolls).
  • Focus this week is back on European inflation and US employment.
  • Today, sees Spain prelim CPI, Swiss GDP, EU Cons Conf, US Conf. board Cons Conf.
  • SUPPLY: Huge Italian supply, Italy 4.4% 2033, 4.35% 2033, 2028 (equates to combined 66.1k BTP), as a side note, the 2028 would also equate to 109.7k Short BTP (2yr), these will weigh into the bidding deadlines.
  • SPEAKERS: ECB Simkus, Holzmann, Centeno, Villeroy, Fed Barkins.

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