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Small gap higher overnight

BUNDS
  • The German 10yr gapped higher overnight, but still trade in a tight range going into the cash open, with the German IP data miss having no impact on the contract.
  • Small support will be at the opening gap at 134.44, and a break below the latter, sees 134.05 next.
  • Resistance is at 134.89, despite printing at 134.95 high yesterday.
  • This is another very quiet session on the data front, with just the Italian retail sales out of Europe and nothing out of the US.
  • SUPPLY: UK £4bn 2025 (equates to 8k Gilt) should have limited impact, Germany 2025 EU1bn green (equates to 10.5k Schatz) shouldn't weigh. SYNDICATION: Spain 10yr, France 2039, Lithuania 10yr.
  • SPEAKERS: ECB Guindos, Knot, Panetta, Vujcic, but unlikely to hear anything new from these members.

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