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Underpinned into the Cash open

BUNDS
  • Bund trade closer to its wide two days 114 ticks mid range, printed a 134.37 low on Monday, ahead of support at 134.31 (gap), and a 135.45 high Yesterday ahead of the next resistance noted at 135.45.
  • These remain the initial support/resistance area for the German 10yr.
  • On the other side of the Pond, US Tnotes (TYH4) continues to slowly edge towards the 4% mark, equated to just above 112.00 Yesterday, a little above there today.
  • It's another busy day ahead, with German Regional/National CPIs, French/Portugal prelim CPIs, US ADP, MNI Chicago PMI.
  • US Treasury Quarterly refunding is also due as well as the FOMC decision (expected unchanged at 5.5%).
  • SUPPLY: German EU 4.5bn 10yr Bund (equates to 36.7k Bund) could weigh.
  • SYNDICATION: Italy 2039.
  • SPEAKERS: Fed Powell's presser.

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