STIR: BLOCK, SOFR Put Calendar Spd Strip

GERMANY FLASH HICP FEB +0.9% M/M, +5.5% Y/Y; JAN +5.1% Y/Y

FLASH CPI FEB +0.9% M/M, +5.1% Y/Y; JAN +4.9% Y/Y

• Germany's preliminary estimates for February inflation were slightly stronger on the HICP reading, both 0.1% above the consensus forecasts.
• The headline CPI matched market expectations, rising to +5.1% y/y from +4.0% y/y in January.
• The German inflation rate remains high, despite reduced base effects of the temporary VAT reduction and low oil prices. Supply bottlenecks and input cost inflation remain key upwards pressures.
• Energy prices remain the key driver of inflation, rising +22.5% Y/Y in February, up 2% from the month prior. The recent developments in the Ukraine crisis increase uncertainty surrounding price growth in the region and how the ECB may raect.

• RES 4: 112.515 High Nov 26, 2021
• RES 3: 112.475 High Nov 30, 2021
• RES 2: 112.415 High Dec 2, 2021
• RES 1: 112.365 Intraday high
• PRICE: 112.245 @ 12:54 GMT Mar 1
• SUP 1: 112.010 Intraday low
• SUP 2: 111.815/635 Low Feb 28 / Low Feb 23
• SUP 3: 111.545 Low Feb 15
• SUP 4: 111.420 Low Feb 11

Schatz futures are climbing too as FI markets rally today. Today’s gains have resulted in a clear breach of resistance at 112.145, the Jan 24 high. The break significantly strengthens the current bullish outlook and today’s gains confirm a full reversal of this year's bearish price action. This has opened 112.515, the Nov 26 high on the continuation chart. Key short-term support has been defined at 111.635, the Feb 23 low.