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Testing next support, ECB at the forefront

BUNDS
  • Bund and the initial support of 131.54 has again held overnight, printed a 131.53 low Yesterday and 131.55 low overnight.
  • This support remains, and a break through would target the 2024 high in Yield at 2.512%, equated to 131.09 Yesterday, although the 2024 low in Futures is at 131.23.
  • It's a lighter day on the Data front out of Europe, with only the Italian IP, unlikely to move the needle as Desks await on the ECB and Presser.
  • Out of the US, sees PPI and IJC.
  • SUPPLY: Italy 2027 (equates to 35k Short 2yr BTP), 2031, 2039 (equates combined 46.6k BTP) these should weigh into the bidding deadlines.
  • US Sells $22bn of 30yr reopening.
  • SPEAKERS: ECB Lagarde, Fed Williams, Barkin, Collins, Bostic, BoE Greene.

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