Bunds: bonds bounce amidst several supportive factors

A decent recovery off the Eurex open as core debt futures benefit from a broad pull-back in stock markets, positive month end asset rebalancing flows, and perhaps latest ECB source reports about a controlled -Eur10 bn/month QE unwind after September to zero by year end. The 10 year German benchmark has reclaimed some of Monday’s losses within a 158.73-93 range vs the 158.71 previous close, but may be capped by supply hedging and data in the form of German state/national CPI and preliminary pan-Eurozone GDP if either beat consensus. Note also, heavy Italian supply on the agenda.

(RANsquawk)