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Supply In Focus

BOND SUMMARY

Core FI has recovered from early lows, albeit fairly tight ranges so far. There
have been few catalysts, but traders noting the stronger dollar (regaining
some recent losses) having a broader cross-asset impact.

Supply has been in focus, with the UK having a middling 2027 Gilt auction
(0.7bps tail) ; decent cover on Italy zero-coupon and linker auctions.

And busy day for US issuance, with 2-Yr FRNs and 7-Yr Tsys for sale.

Not much on the data docket today, with US consumer confidence numbers
the only release of note ahead.

Also on the consumer front, we also get plenty of earnings reports
including Visa and McDonald's. ** Latest levels:

  • Sep US 10-Yr futures (TY) down 0.5/32 at 139-14.5 (L: 139-08 / H: 139-15)
  • Sep Bund futures (RX) steady at at 176.8 (L: 176.49 / H: 176.9)
  • Sep Gilt futures (G) down 13 ticks at 138.21 (L: 138.08 / H: 138.31)
  • Italy / German 10-Yr spread 1.3bps wider at 149.2bps

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