US EURODLR FUTURES: BLOCK, Red Pack

• Long end Gilts once again stand out, with 10YY +23.6bps and 30YY +28.8bps partially tied impending end to BOE long gilt buy scheme on the 14th and extra GBP37bln of gilt issuance over 12 months due to the APF.
• 30Y Gilt yields at 4.6655% saw a session high of 4.7294%, coming closer to a 76.4% retracement of the rally seen after the BoE gilts purchase plan was initially announced.
• Further sizeable moves in EU FI, with the 10Y BTP-Bund spread recording its largest drop since June, coming from the pincer movement of BTPs rallying and Bunds selling off on a Bloomberg report that Germany will support joint EU debt if disbursed as loans to tackle the energy crisis.
• It left BTPs -7.5bps on the day vs +14.3bps for Bunds, with the spread narrowing 22bps to 228bps with at one point a 30bp intraday narrowing, reversing much of last week's widening.

10Y BTP (white), Bund (yellow) and spread (green)Source: Bloomberg

SPX eminis extending session lows last few minutes, IT continues to underperform, semiconductor makers feel pressure from Pres Biden's new export measures to China. ESZ2 futures currently around 3612.50 (-40.75) - well off last week's high of 3820.00 on Oct 5. This level marks a key resistance, where a break is required to reinstate a short-term bullish theme.

• The broader trend remains down and attention is on the bear trigger at 3571.75, the Oct 3 low. A break of this level would confirm a resumption of the broader downtrend and open 3558.97, a Fibonacci projection.

US President Joe Biden has issued a statement on today's Russian missile strikes on targets across Ukraine.

• Note: Typo corrected in title.
• Biden: "These attacks killed and injured civilians and destroyed targets with no military purpose. They once again demonstrate the utter brutality of Mr. Putin's illegal war on the Ukrainian people."
• Biden: "Alongside our allies and partners, we will continue to impose costs on Russia for its aggression, hold Putin and Russia accountable for its atrocities and war crimes, and provide the support necessary for Ukrainian forces to defend their country and their freedom."
• Biden's statement does not commit to any specific new measures but additional missile defence systems for Ukraine may be announced in coming days.
• Secretary of State Antony Blinken spoke with Ukrainian Foreign Minister Dmytro Kuleba, who also held calls with UK FM James Cleverly, Turkish FM Mevlut Cavusoglu, NATO Sec Gen Jens Stoltenberg and High Representative of the European Union for Foreign Affairs Josep Borrell today.
• After the call with Blinken, Kuleba said: "I raised a number of important issues, including the strengthening of Ukraine’s defense capabilities, new sanctions on Russia, and holding Moscow accountable for its terrorism."