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The contract remains under pressure

BUNDS
  • Bund remains under pressure despite showing 9 ticks up going into the Cash open, and desks will start to keep a close eye on the 10yr Yield level and the 2024 high situated at 2.706%.
  • Looking at OAT futures and its low overnight print of 122.58, when it is quoted, the 10yr Yield will be close to the next resistance of 3.364%, equated to 122.54 Yesterday.
  • For Bund, small resistance moves down to 130.85, followed by 131.52 (gap).
  • Immediate support comes at 130.25.
  • Today sees, EU CPI/PPI, and out of the US, JOLTS.
  • SUPPLY: UK £4bn 2027 (equates to 40.7k Gilt) should weigh, Germany green 2030 and 2050 (equates combined to ~3.37k Buxl) too small should have no impact on the contract.
  • SPEAKERS: ECB Lagarde, Guindos, Elderson, Schnabel, Fed Powell, Gooslbee.

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