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Some extension higher post Cash open

BUNDS
  • Bund extends its recovery from Yesterday's low post Cash open, but volumes remain somewhat subdued with the attention turning to the PMIs.
  • Small support moves up to 130.83, followed by 130.52, Yesterday's low, but also the 2.55% area in Yield term.
  • Resistance is seen at 131.87, followed by 132.30.
  • Main focus on the Data front will be on the prelim PMIs today.
  • SUPPLY: Italy €2.5bn 2026 (equates to 18.6k short 2yr BTP) could weigh, plus 2029, 2036 linkers (won't impact BTP). German €5bn Schatz (equates to 53.4k Schatz) should weigh, US sells $69bn of 2yr Notes.
  • SYNDICATION: EU and Finland.
  • SPEAKERS: BoE Haskel, Pill, ECB Panetta, Nagel (x2).

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