Bunds: firmer and flirting with 158.00 handle in early trade

An air of consolidation in core debt approaching the midpoint of the week and another session dominated by Central Bank policy decisions, on paper at least. The Fed heads the cast and will grab most attention, albeit after EU hours, while the CNB is widely expected to deliver a 3rd consecutive 25 bp hike at noon before an unchanged RBNZ post-FOMC, but with focus on latest guidance after a dovish shift last time. In the interim, a largely barren Eurozone data agenda, bar French consumer confidence, but German supply to digest and more ECB speakers slated including Mersch, Smets and President Draghi. Turning to Eurex price action since the open, Bunds on the front foot after the latest downturn and ratchet up in yields between 157.91-158.05 vs yesterday’s 157.87 close, as BTPs trade defensively amidst more conflicting 2019 budget deficit reports from Italy.

(RANsquawk)