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Services PMI and supply, the early focus

BUNDS
  • Bund remains close to flat on the Cash open, with lighter volume overnight, following a very volatile start for the week.
  • The contract is well off yesterday's high, after Bund rallied a massive 735 ticks from the 28th Sep to yesterday.
  • Resistance moves down to 142.19, while small support moves up to 141.23, followed by 140.77 (gap).
  • Today, sees services PMIs from across the globe, but final reading for France, Germany, EU, UK and the US.
  • Out of the US, also includes ADP and trade balance.
  • SUPPLY: German EU1.5bn 2038 (equates to 14.8k Bund), UK £3bn 10yr (equates to 20k Gilt) could weigh into the bidding deadline. SYNDICATION: Estonia EU 10yr Benchmark.
  • SPEAKERS: Fed Kashkari and Bostic.

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