US TSY OPTIONS: Aug'25 5Y Call Buy

• Treasury futures add slightly to gains (TYU5 +13.5 at 110-20, 4.4203% yld) after the $39B 10Y note auction re-open (91282CNC1) stops .9bp through: drawing 4.421% high yield vs. 4.430% WI; 2.52x bid-to-cover vs. 2.60x prior.
• Peripheral stats: indirect take-up retreats to 70.56% vs. 71.19% prior; direct bidder take-up at 20.48% from 19.88% prior; primary dealer take-up 8.96% vs. 8.93% prior.
• The next 10Y auction (re-open) is tentatively scheduled for July 9.

• US TSY 9Y-11M NOTE AUCTION: HIGH YLD 4.421%; ALLOTMENT 30.58%
• US TSY 9Y-11M NOTE AUCTION: DEALERS TAKE 8.96% OF COMPETITIVES
• US TSY 9Y-11M NOTE AUCTION: DIRECTS TAKE 20.48% OF COMPETITIVES
• US TSY 9Y-11M NOTE AUCTION: INDIRECTS TAKE 70.56% OF COMPETITIVES
• US TSY 9Y-11M AUCTION: BID/CVR 2.52

• RES 4: 1.1625 1.500 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 3: 1.1608 High Nov 9 2021
• RES 2: 1.1573 High Apr 21 and the bull trigger
• RES 1: 1.1495 High June 05
• PRICE: 1.1486 @ 16:27 BST Jun 11
• SUP 1: 1.1356 20-day EMA
• SUP 2: 1.1232/1.1065 50-day EMA and a pivot level / Low May 12
• SUP 3: 1.1026 38.2% retracement of the Feb 3 - Apr 21 bull cycle
• SUP 4: 1.0943 Low Apr 10

EURUSD rallied on soft US CPI data, building on recent gains. The breach of 1.1419, May 26 high, confirmed an extension of the current bull cycle and sights are on 1.1573, the Apr 21 high and bull trigger. MA studies are in a bull-mode position, highlighting a dominant uptrend. Support to watch is 1.1232, the 50-day EMA. A clear break of this average would undermine the bull theme. Initial support is 1.1356, the 20-day EMA.