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What to watch out for

BUNDS
  • Bund is close to the next psychological support at 171.00, but next target remains at the -0.246% yield level which equate to the 170.50 ish area.
  • Couple of spread to keep an eye on, are the BTP/Bund spread trending below the 100bps (tighter) level and the Gilt/Bund which targets the March high at 113.4868, also the widest level since 11th November 2019.
  • We have no tier 1 data left for Europe, albeit EU CPI, but final reading here.
  • On the other side of the pond, sees US Michigan Prelim release.
  • Some focus today, with most investors already looking towards the Fed next week, on ECB de Cos, Makhlouf,, BoE Bailey speaks on IMF Panel.
  • ECB release 1st voluntary TLTRO repayments, where the Banks can pay back money drawn under TLTRO (11.05BST)

Chart source: Bloomberg

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