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Notable early volume in the Schatz

BUNDS
  • A limited tight 17 ticks range for Bund going into the Cash open.
  • Notable early volume was mostly in the Schatz, traded twice the Volumes seen in Bund overnight, but no notable block or clip size went through overnight.
  • A 1k lot spread is attributed to some of the volume 2yr Volume but not all.
  • Outperformance in Schatz future will help keep the curve leaning steeper in early trade.
  • For Bund, support is at 132.75, while resistance moves up to 133.56.
  • There's no tier 1 data for the session, with the busiest day in terms of Data coming Tomorrow, that will include Global PMIs.
  • US FOMC minutes are due, but it has been a long time since it has moved markets.
  • SUPPLY: UK £4bn 2028 (equates to 17.2k Gilt) could somewhat weigh, German €4.5bn Bund (equates to 36.7k Bund) could weigh, US Sells $16bn of 20yr and $28bn of 2yr FRN reopening.
  • SYNDICATION: Luxembourg 10yr.
  • SPEAKERS: Fed Bostic (voter), Barkin (voter), Collins (non voter), and BoE Dhingra.

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