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Services PMIs and supply the early focus

BUNDS
  • Bund is back towards flat post cash open, and offered after the German Factory orders beat, but liquidity remains on the low side with the contract quoted 2 ticks wide in early trade.
  • Small support moves up to 136.18 but better is seen at 135.95 initially.
  • Below the latter, sees 135.54, where the contract was trading post the overdone JOLTS data rally.
  • Resistance is at 136.77 initially.
  • Today sees, French IP, Global Services PMIs, but final readings for FR/GE/EU/UK/US.
  • Also on the other side of the Pond, US ADP/ISM services.
  • SUPPLY: UK £3.5bn 2029 (equates to 16k Gilt) should have limited impact, German 7yr EU4bn (equates to 21k Bund or 43.6k Bobl) could weigh into the bidding deadline.
  • SPEAKERS: ECB Vujcic, Lane, BoE Tenreyro, but unlikely to hear anything new.

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