Pinch punch first day of the month....Labor day so lets get the EU open over with and find something more constructive to do with our day!

 

Bund Daily

 

 

All eyes on Thursday ECB, 10 bp cut? QE or not QE? If QE WTF QE? All fun and games. Smart people at banks tell us that markets haven't fully priced in the rate cut idea just now...Maybe they are just peeved they paid 88/89 in the Schatz on stop last Monday. Anyway,German GDP and some EU manufacturing PMI's to watch for this morning.

 

Bund 30 min. Nothing escalated at the weekend so a bit of event risk could be taken off the table...Or the fact it maintained strong uptrend could mean we test higher in early end of summer thinness. Or with ECB on the horizon some flattening profit could be realised. Momentum clearly to the upside long term & intraday. A break of 151.26 area may see that change but whilst the Middle east RUS/UKR things simmer the likely hood big time selling remains very remote

 

€ curve Late Schatz buying Friday minor steep move against a back drop of significant flattening.

€ teds

Good luck
L