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Supply will be the early focus

BUNDS
  • A tight and limited traded range overnight for Bund given a quieter start for the Week, with the main event on Friday in terms of data release.
  • Bund saw a small gap higher on the overnight open, but trades within ranges.
  • The contract has so far held in a 105 ticks range for the past 7 sessions.
  • Resistance is unchanged at 132.94, 133.21, and 133.58.
  • Small opening gap is down to 132.50, while support is still eyed at 131.97, followed by 131.58.
  • Today sees, Spain final GDP, and for North America, Canada CPI will be the highlight of the day.
  • SUPPLY: Italy €2.5bn 2026 (equates to 17.2k short 2yr BTP) could weigh on a lower liquidity day, plus 2030, 2039 linkers (won't impact BTPs), UK sells £1.5bn 2033 linker (won't impact Gilt), Germany €4.5bn Schatz (equates to 42.8k Schatz) should weigh into the bidding deadline. US sells $69bn of 2yr Notes.
  • SPEAKERS: ECB Stournaras, Nagel, Panetta, Fed Bowman (x2) Cook.

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