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Selling going through since the cash open

BUNDS
  • Selling going through in Bunds, following the UK CPI beat, but a much more subdued reaction in FX and GBP, this will make for an interesting Gilt open.
  • Nonetheless Bund is back in the red on the cash open, after being underpinned overnight with US Treasuries, as investors hunt for yields.
  • Bund 10yr printed a 0.325% high yesterday, highest since 2018.
  • Support in Bund is still seen at 164.37 initially.
  • Russia/Ukraine tensions is taking a back seat, but the street will be aware of any changes.
  • There is no tier 1 data left for Europe, out of the US sees Retail Sales and IP, but most of the focus will likely be on the FOMC minutes
  • SUPPLIES: German EU4bn Bund (equates to 26.1k), US $19bn 20y.
  • SPEAKERS: US Fed Kashkari.

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