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US CPI and heavy supply in focus this week

BUNDS
  • ALL EYES on the US CPI this week (Thursday), but note this is a heavy supply week for EGBs, which could limit upside risk during the morning session on delta hedging.
  • Bund is in the red, with some selling emerging in the shorter end part of the curve. Bobl and Schatz, lead Bund lower, and similar price action in US Treasuries, 2yr and 5yr leading.
  • Resistance are at 137.47, 137.84 and 138.12.
  • Support moves up to 136.67 initially.
  • There's no tier 1 data to start the week.
  • SUPPLY: EU EU3bn 2025 (Would equate to 34.9k Schatz), and EU EU2bn 2041 (would equate to 17.8k Bund).
  • SPEAKERS: BoE Pill, {us} Fed Bostic, Daly (both non voters).

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