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US Inflation is at the forefront for today

BUNDS
  • Bund found some support at 134.87 Yesterday evening, with the heavy Issuance pricing playing somewhat a part.
  • Today and despite the small gap higher overnight, the futures contract remains heavy, with continued diversion with US Treasuries, as the street awaits the US Inflation data.
  • The outperformance in US, has pushed the Tnotes/Bund spread to 180.00bps and the November low situated at circa 178.00bps.
  • For Bund support is still at 134.87 (noted this week), followed by 134.37.
  • Resistance is unchanged at 135.89.
  • This morning sees, Italian IP, Portugal final CPI, and out of the US, IJC and of course US CPI/Real Average earnings.
  • ECB publishes Economic bulletin, and the US, Monthly Budget Statement.
  • SUPPLY: Italy 2027 EU4bn (equates to 51.3k 2yr Short BTP) should weigh.
  • US Sells $21bn of 30yr reopening.
  • SYNDICATION: Ireland 10y.
  • SPEAKERS: ECB Vujcic (x2), Fed Mester, Barkin.

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