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More Central Bank decision ahead

BUNDS
  • Bund remains within yesterday's mid range at 174.25 versus a 173.97/174.56 range yesterday.
  • Mister Powell has once again delivered, and kept market mostly stable after announcing a faster pace of Taper $20bn vs $10bn and $10bn vs $5bn MBS (as widely expected by most previews), while noting that monetary policy tightening will still be gradual.
  • We have another busy session in terms of Central Banks and will it be interesting to see what the BoE does, although survey are going for an unchanged rate for the UK, some investors have shifted the needle in rate hike outlook given the inflation data yesterday.
  • ECB announces TLTRO III allotment (10th round), and on the data front we get Prelim Services PMIs from across the street.
  • Other CB include Norway and SNB, but these won't impact Bund.
  • For EM Traders, CBRT is the standout, as the Central Bank battles high inflation by cutting Rates, another 100bps cut is expected today, as the currency (TRY) keeps hitting record low across the globe

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