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Moving off the lows post Cash open

BUNDS
  • Although risk remain tilted to the downside for Bund near term, the contract recovers from its overnight low, with a large Block trade buyer in TYH4 helping Bund back above the 134.00, as desks turn their attention to the prelim PMIs today.
  • Support in Bund is still unchanged for now, at 133.69, and break through the latter opens to the 133.31 area (2.40% Yield).
  • Resistance is also unchanged, with some desks likely looking at 134.66, Monday's high, but better is seen towards the 135.00 figure.
  • It's all about the Prelim PMIs from France, Germany, EU, UK and US today.
  • SUPPLY: UK £4bn 2028 (equates to 17.4k Gilt) should have limited impact, Germany 2038, 2046 (equates to combined 9k Buxl), should have limited impact, Portugal 28s, 42s, 45s. And US Sells $61bn of 5yr Notes.

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