[MARKET UPDATE] Bund Mar'26 lifted from 127.40 to a session peak of 127.62 within a few minutes of German State CPIs; potentially on the North Rhine Westphalia M/M printing at 0.00%, whilst the Nationwide M/M expectation implies a slightly firmer reading

Bund Mar'26 lifted from 127.40 to a session peak of 127.62 within a few minutes of German State CPIs; potentially on the North Rhine Westphalia M/M printing at 0.00%, whilst the Nationwide M/M expectation implies a slightly firmer reading.

The movement in Bund futures suggests that market participants are reacting to the German State CPI data, particularly noting the 0.00% M/M print from North Rhine Westphalia, which indicates a stability in inflation. This could signal cautious optimism about inflation trends in Germany, potentially leading to a reassessment of monetary policy outlook, particularly if the nationwide expectations imply a firmer reading ahead.