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Some focus on Lagarde

BUNDS

Bund stays bull flatter on the Govies and cash open.

  • Pullback in Equities, keeps core underpinned, but within last week ranges.
  • Profit taking as we trade at record high in indices, as well as some CTA selling and big program selling has knocked Equities from their historic levels.
  • Focus today, no tier 1 data to start the week, so some attention on speakers with ECB Lagarde and Vasle scheduled .

SUPPLIES this week:

  • Tuesday: {ne} Netherlands come to the market with E1-2bln of the 0% Jan-52 DSL. Austria look to sell E1.38bln of the 0% Feb-30 RAGB and the 0.75% May-51 RAGB.
  • Wednesday: Germany launch the new Apr-26 Bobl. Portugal sell E1.00-1.25bln of OT. On offer are the 0.475% Oct-30 OT and the 0.90% Oct-35 OT
  • Thursday: Italy sells M/T and L/T BTPs. Details are set to be announced on Monday.

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