GILT PAOF RESULTS: GBP1.124998bln of the 4.375% Mar-28 Gilt sold.

• German HICP came in a tenth below consensus at 2.3%Y/Y (versus consensus of 2.4%Y/Y, prior 2.6%) with the M/M print at 0.4% (0.4% consensus although 0.5% was the modal expectation and analysts were split between 0.3-0.5%).
• The national CPI came in at 2.2%Y/Y (MNI tracking 2.2-2.3%, consensus 2.2%, prior 2.3%), M/M at 0.3% (in line with MNI tracking of 0.3-0.4% and consensus of 0.3%).

Tesoro Publico has announced it will be looking to sell a combined E5.5-6.5bln of the following Bono/Oblis at its auction this Thursday, April 3:

• the 2.40% May-28 Bono (ISIN: ES0000012O59)
• the 3.10% Jul-31 Obli (ISIN: ES0000012N43)
• the 3.90% Jul-39 Obli (ISIN: ES0000012L60)

Tesoro Publico has additionally announced it will be looking to sell E0.25-0.75bln of the 1.00% Nov-30 Obli-Ei (ISIN: ES00000127C8) at that auction.

Bund futures operate off session lows ahead of the German nation CPI reading, last 129.15.

• If the data comes in the soft side it is worth remembering that session highs in futures are located at 129.59, with the March 5 low in 10-Year yields located at 2.654% (today’s low is 2.659%).
• If we get an upside surprise in inflation then bears will look to close opening gaps in Bund futures (128.91) and 10-Year yields (2.727%).