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Supplies and EU prelim GDP in focus

BUNDS

Bund remains heavy since the cash open, although at 3 ticks up on the session.

  • The contract remains at the lowest parts of the range, with 10yr yield trending at highest levels since May 2019.
  • A little perplexed by the risk on overnight, with no clear driver, besides another strong session for Commodities.
  • The risk on looked driven by a bounce in Tech, surprising given that we still have supply chain issues.
  • Some attention this morning on the EU prelim GDP, and on Friday the next round of global PMIs.
  • Speakers include, BoE Bailey, Broadbent, Ramsden, ECB Villeroy, Lagarde, and Fed Kaplan
  • SUPPLIES: UK 2024 and 2041 (equates combined 46k Gilts), should keep the lid on Gilts into the bidding deadline.
  • German Schatz EU6bn (equates to 62k Schatz, or 8.5k Bunds).
  • SYNDICATION: EU Sure 8yr, 25yr.

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