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Powell and supplies in focus

BUNDS
  • A tight and light overnight session for Bund, with desk fading some of the sell off just ahead of the Psychological 0.00% yield resistance, Equates to 169.34..
  • The 10yr Yield printed a -0.024% high yesterday.
  • There are no tier 1 data for today, and the afternoon focus will be on Powell and the Senate committee hearing.
  • Pre-prepared statement: "Federal Reserve Chair Jerome Powell said the central bank will prevent higher inflation from becoming entrenched while cautioning that the post-pandemic economy might look different than the previous expansion."
  • SUUPLIES: Main early focus today will be on supplies, although nothing too big is expected in terms of delta hedging.
  • Today sees, Netherlands EU5bn 4yr (Equates to 13k Bund), Austria 2031, 2051, German 10yr linker, UK £3bn 2026 (equates to just 14.6k Gilts).
  • Out of the {us} US $52bn of 3yr.
  • SYNDICATION: Spanish 10yr EUR Benchmark.
  • SPEAKERS: ECB Kazaks, Fed Mester and George

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