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US inflation is at the forefront on Wednesday

BUNDS
  • Very little on the calendar to start the week, with ALL EYES on the US inflation this week.
  • European supplies are on the low side, so unlikely to be a big directional factor.
  • Market continues to ignore the continued rise in Covid cases across the Globe, as market participants and investor price forward rate outlook.
  • US Tnotes are through the initial yield target of 1.7800%, but are finding some resistance ahead of the psychological 1.80%. Tnotes are seeing some buying interest on the Bund cash open.
  • Bund yield resistance is at 0.000%, which equate to 169.40.
  • There are no tier 1 data left for the session, the US Wholesale Inventories will be final reading

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