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Lean steeper on the cash open

BUNDS
  • A light cash open for Bund, with most desks on the sideline at the early start of the week.
  • The contract is nonetheless supported on FTQ, following Omicron spreading concerns.
  • German 5/30s lean steeper, but the curve overall still trade nearer the flattest levels seen since Match 2020.Some fading at these lower levels have so far been favoured.
  • Most of the action in terms of flow remains in Equities, and rolling Future positions into March, ahead of the Central Banks and expiry on Friday..
  • We have no tier one data left for Europe, and out of the US, focus will be on the PPI release,
  • SUPPLIES: Italy EU3.5bn (Equates to 39.6k BTPS or 8.4k BTP)/
  • SPEAKERS: BOE's Breeden and Foulger brief on financial stability report

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