BUNDS: Positive Iran Talks keep Futures underpinned

* The German Bund is slightly underpinned but short of the initial resistance moving back up to 121.40 Yesterday. * This level also closely matched to the expected 3.40% Yield level that Equated to 121.43 Yesterday. * For now, the Bund printed a 121.38 high Overnight, a couple of ticks above Yesterday's high of 121.36. * US Official reported that they had very positive talks with the Iranian delegation Yesterday. * As a side note, it is very unlikely that Iran will move away from the MOU, so speculations are that a deal will touch on the end of war on all fronts, removal of the US blockade as well as Sanctions. * The US Tnotes (TYZ6) has stuck to a 105.21/106.12 range for the past 8 sessions. This range will be seen as the initial support and resistance levels. * While the chart looks bullish (see chart below), medium term risk is still to the upside for Global Yields. * Prelim PMIs will take centre stage for Europe, the UK and the US Today. * SUPPLY: German 20s and 30s equate to 15.3k Buxl, which should weigh into the bidding deadline. US Sells $28bn FRN reopening (won't impact Treasuries). The US $70bn 5yr Notes will weigh. * SPEAKERS: ECB Kaasik, Zigman, Cipollone, Lane, Fed Bar