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US Treasuries keep the pressure on EGBs

BUNDS
  • Just a 9 ticks swing in Bund post UK data, with initial bid going through, but these were tiny moves.
  • Nonetheless, Bund is back at testing session low, again US Treasuries led, with Tnotes through its session low.
  • Some will look for support in Bund at 131.23, the 2024 low, but in terms of Yield, better support will be seen towards the 131.00 figure (2024 high in Yield).
  • Resistance moves to 132.52 area, followed by 133.24.
  • Today includes, Italy final CPI, German ZEW, and US IP.
  • SUPPLY: UK 10yr Linker, shouldn't impact Gilt, Netherlands €5bn 2024, should weigh into the bidding deadline, Finland 5s, 30s, should have no impact.
  • SPEAKERS: ECB Rehn, Villeroy, Vujcic, BoE Clare Lombardelli testifies, Bailey, Fed Jefferson, Williams, Barkin, Collins, and given the US Data beat of late, main focus will be on Powell.

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