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US vs Germany divergence continues

BUNDS
  • Bund stays underpinned, following the Germany Factory miss, and divergence with the US Treasuries continues, after plenty more hawkish comments from Fed speakers overnight.
  • Tnote/Bund spread continues to widen, highest since April 2021, while the US 10yr yield edges to highest levels since March 2019.
  • ALL EYES here, will be on the US CPI next week.
  • Bund has small a gap up to 157.86, which will be seen as the initial resistance.
  • There is no tier 1 data left for the session. Out of the US, sees the FOMC minutes.
  • SUPPLY; Early focus will be on the Italian 2028, 2047, and 2051
  • SYNDICATION; Portugal 10yr EUR Benchmark

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