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Leaning flatter on the cash open

BUNDS

Bund stays in a tight 12 ticks (170.67-170.79) range since the cash open.

  • German 5/30s, although the longer end is better offered, the curve trades at that 85.913-92.955 mid range (88.165).
  • Not broken since mid March.
  • A few early questions this morning and the latest bid in Equities, which look to have been triggered circa 06.24BST, albeit in limited moves.
  • Some speculate that the HSBC beat, although released at 05.00BST (during the lunch brake), may have a been a contributor as Europe came in.
  • Equities are fading off the highs at the time of typing.
  • A fairly light day on the data, so early morning focus will turn to the new German 7yr EU4bn (Equates to 48.5k Bobl or 20.7k Bunds).
  • Out of the US $62bn 7yr and $28bn 2yr (FRN)

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