European fixed income preview 18 May 2016

A summary of what's coming from Livesquawk's James Hirai

Bunds have had a quiet start following an uneventful Asian session. But there are plenty of things to look out for this morning starting with Final Eurozone CPI at 10:00BST which is expected to confirm the Flash estimate of -0.2% with a risk of a weaker print due to energy factors.

This is followed by a 10y German Bund reopen at 10:30BST which is expected to go smoothly. Yesterday saw a large slate of swapped corporate issuance which supported Bunds into the afternoon and today looks like it could be a repeat.

Italy also syndicates a new 5y BTP Linker, the first in 3 years. The afternoon will be focused on the Fed's FOMC minutes from its April 27 meeting, especially in light of the recent slew of hawkish rhetoric from various FOMC members.

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