EU FINANCIALS: Banco Comercial Portugues SA: Q2 25 Results

• The DMO will return to the market this morning to hold a short 3-year gilt auction of the 4.375% Mar-28 gilt for GBP5.0bln nominal.
• The nominal size of this auction will be the largest seen for a number of years and is a step up from the GBP4.75bln sold in June, GBP4.5bln sold in April and the GBP4.25bln sold in earlier auctions in 2025.
• All of these auctions have seen solid demand with tails ranging between 0.2-0.5bp (0.3bp most recently and with the exception of the launch auction in November which saw a 1.0bp tail).
• The lowest accepted price has always exceeded the pre-auction secondary market mid-price at each auction. The bid-to-cover has always exceeded 3x, too (ranging from 3.08-3.48x).
• Even with a slightly soft auction of the 1.50% Jul-53 green gilt auction yesterday and last week's soft 15-year 4.375% Jan-40 auction and 4.25% Dec-46 tender, we think demand for short-dated gilts remains strong and we look for a successful auction today.
• Timing: Results will be available shortly after the bidding window closes at 10:00BST with a further GBP1.25bln available to successful bidders via the PAOF.

Bank of Portugal Governor Mario Centeno speaks to MNI at Sintra.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com

• RES 4: 171.28 1.382 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 3: 171.09 High Jul 23 ‘24  
• RES 2: 170.47 76.4% Fibonacci retracement for Jul - Aug ‘24 downleg
• RES 1: 169.91 1.236 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• PRICE: 169.02 @ 16:23 BST Jul 1 
• SUP 1: 168.46 Low Jul 01 
• SUP 2: 167.41 20-day EMA 
• SUP 3: 166.04 Low Jun 19   
• SUP 4: 165.30 50-day EMA   

The trend set-up in EURJPY remains bullish and the cross is trading just below its latest highs. Recent gains resulted in a break of 166.69, the Oct 31 ‘24 high. Scope is seen for a climb towards 170.47, a key Fibonacci retracement point. Note that the uptrend is in overbought territory, a pullback would unwind this condition. Support to watch lies at 167.41, the 20-day EMA. A break of the EMA would suggest potential for a deeper retracement.