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Underpinned on the cash open

BUNDS
  • Govies are taking a breather on the Bund cash open, after another eventful morning European session yesterday.
  • Contracts are underpinned, with small dip buying.
  • Focus remains clearly on yield in terms of technical, with some desk seeing receiving flow, as yield hits multi year highs.
  • Today sees no tier 1 data, US whole sales Inventory will be final reading, so focus will be on speakers, while all eyes remains on the US inflation data tomorrow.
  • SUPPLIES: German EU1.5bn 30yr (Equates to 9.7k Buxl, or 25.3k Bund), should limit early upside just into the bidding deadline, Portugal 7 and 10yr, won't impact Bund, and on the other side of the pond, US 10yr for $37bn.
  • SPEAKERS: BoE Pill, ECB Schnabel, Fed Bowman and Mester.
  • OVERNIGHT: Fed Daly (non voter, leaning Dove) “Without a big surprise in the data, negative surprises, we would be looking to raise interest rates as early as March"
  • There's also a syndication from Spain, with a EUR benchmark 30y bond sale.

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