Bunds: a fraction firmer ahead of flash PMIs

Bunds kicked off Tuesday’s session slightly firmer for choice within a tight 161.58-71 range, and appear reluctant to venture too far given little in the way of clear leads from US Treasuries, and a lot to trade off later this week – namely the ECB policy pronouncements. Spanish and other regional political uncertainty remains a prop for core debt, while the near term focus falls on flash PMIs, although these will have to be significantly outside the range of expectations to really impact. Instead it’s Thursday’s QE tapering decisions that will drive markets, one way or the other, with no firm ‘consensus’ amidst an array of contrasting opinions on the size of the monthly reduction in bond buying and duration extension. In the meantime, techs could continue to steer sentiment after a false or failed upside break yesterday, but not much conviction on the offered side as traders sit tight ahead of the main event.

24 Oct 2017 - 07:31- - Source: RANsquawk

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