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US Inflation and earnings are the main focus

BUNDS
  • Tight ranges across assets and Govies overnight, and into the EU Cash Govie open, with Bund trading in a 12 ticks range pre open, Estoxx is stuck in a 7 points range, EURUSD 28 pips range, and Cable 23 pips.
  • The German Bund saw a small pick up in Volume on the cash open to the sell side, German final CPI came inline, and the support seen circa 135.00 has so far held.
  • Below the latter, opens to 134.75 and 134.35.
  • Resistance is unchanged at 136.21.
  • Italian IP is the last European release for the session, and all the focus is of course on the US CPI and real average earnings.
  • SUPPLY: UK £3.5bn 10yr (equates to 27.7k Gilt) may weigh, German 2050 and 2053 (equates to combined 14.9k Buxl), may weigh into the bidding deadline. US sells $35bn of 10yr notes.
  • SPEAKERS: ECB Muller and Centeno (x2).

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