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Testing next resistance in Yield terms

BUNDS
  • Bund is still under pressure overnight and into the cash open despite showing 4 ticks up going into the Cash open.
  • The overnight session overall has been far more subdued, with low volumes across core Govies and Rate markets.
  • Risk is tilted to the downside, but Bund found support at the initial resistance in Yield, noted at 2.326% Yesterday, printed a 2.326% high Yesterday, with a 134.15 low.
  • Immediate support is at the initial 134.15/134.05 area.
  • Below the latter, opens to 133.69.
  • Resistance is at 134.92/134.94.
  • There's no notable data out of Europe for today, and on the other side of the Pond, only sees US IJC, as the only notable release.
  • ECB will publish its account of the December Meeting.
  • SUPPLY: Early focus will be on Supply, Spain 3s, 7s, 15s, {fr} France 4s and 5s plus linkers. US also sells $18bn of 10y TIPS.
  • SPEAKERS: Fed Bostic (x2), ECB Lagarde.

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