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US NFP, EU/China Summit

BUNDS
  • A steady overnight session for Bund, seems that we did get some small Month End flow yesterday towards 16.15GMT, the low liquidity, helped exacerbate the move up to 159.05, yesterday's high.
  • Most of the interest was locking profit squaring going into the Month/Quarter end.
  • Bund opened lower overnight, and has a small upside gap, up to 158.66, will be seen as the small short term resistance.
  • Today, sees European manufacturing PMIs, also the EU prelim CPI. On the other side of the pond, US NFP (not an ALL EYES), a miss will likely be brushed aside, while a beat will put further conviction towards a 50bp hike at the Fed 4th May meeting, but unlikely to be fully decided, until we get the US CPI on the 12th April.
  • Nonetheless, knee jerk reactions won't be ruled out.
  • SPEAKERS: ECB Centeno, de Cos, Makhlouf, Schnabel, Knot, and Fed Evans, unlikely to learn anything new.
  • EU/China summit is expected to start around 10.00GMT

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