UK T-BILL AUCTION RESULTS: 1//3/6-month UKTBs

• On the commodity front, a bull cycle in Gold remains in play and this week’s breach of $4000.0 reinforces the uptrend. The move higher maintains the price sequence of higher highs and higher lows. Furthermore, momentum studies highlight a condition known as momentum drag - where momentum remains in overbought territory and moves sideways - a bullish signal. Sights are on $4074.54, a 2.500 proj of the May 15 - Jun 16 - 30 price swing. Support to watch is $3775.3, 20-day EMA.
• In the oil space, WTI futures have recovered from the most recent low print - a correction. A bearish theme remains intact. Last week’s sell-off resulted in a move through key support and the bear trigger at $60.85, the Aug 13 low. Clearance of this level strengthens the bear threat and paves the way for an extension towards $57.50, the May 30 low. Initial firm resistance has been defined at $66.42, the Sep 29 high.

DSTA has announced it will be looking to sell E2.0-2.5bln of the 0% Jul-31 DSL (ISIN: NL00150006U0) at its auction next Tuesday, October 14.

• MNI: US MBA: MARKET COMPOSITE -4.7% SA THRU OCT 03 WK