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Testing 2.50% in 10yr Yield

BUNDS
  • Bund sees only what can only be described as stops on the cash open, with the contract trading through the 133.00 support, did test as low as 132.90 yesterday.
  • Yield aren't quoted yet, but we are now testing the 2.50% level which equated to 132.80 yesterday.
  • Next key support area will be at 2.557% = 132.18 (the big one, March 10th high and held on the 26th May).
  • Resistance moves down to 133.51 initially.
  • Today sees French and Portugal final CPIs, US retail sales/IJC/IP.
  • Main focus is on the ECB with an expected 25bps hike.
  • SUPPLY: Heavy supply, with Spain 3s, 5s, 15s, France 3s, 5s, 6s plus linkers., linkers don't weigh on Bonds.
  • SPEAKERS: ECB Nagel, Lagarde, Villeroy, BoE Cunliffe.

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