US TSYS: Bonds Extending Lows, Curves Bear Steepen
- Treasury futures have just extended session lows in the last few minutes, no particular headline driver - but likely driven by a combination of preemptive rate locking ahead next week's corporate supply (estimates as high as $40B, not to mention next week's front-loaded Treasury supply).
- The Mar'25 10Y futures trade down to 108-23 (-3), 10Y yield +.0244 at 4.5834%, 2s10s curve +.802 at 32.544 nearing yesterday's May '22 highs.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURUSD TECHS: Resistance Remains Intact For Now
- RES 4: 1.0937 High NOv 5 / 6 and a key resistance
- RES 3: 1.0825 High Nov 7
- RES 2: 1.0730 50-day EMA
- RES 1: 1.0590/97/98 20-day EMA / High Nov 29
- PRICE: 1.0527 @ 17:01 GMT Dec 4
- SUP 1: 1.0425/0335 Low Nov 26 / 22 and the bear trigger
- SUP 2: 1.0311 1.382 proj of the Sep 25 - Oct 23 - Nov 5 price swing
- SUP 3: 1.0258 1.500 proj of the Sep 25 - Oct 23 - Nov 5 price swing
- SUP 4: 1.0201 61.8% retracement of the Sep 28 - Juk 18 bull leg
Key short-term resistance in EURUSD to watch is 1.0590, the 20-day EMA. It remains intact and Monday’s move lower reinforces the short-term importance of this resistance. A clear break of it is required to signal potential for a stronger recovery. This would open 1.0730, the 50-day EMA and allow for a continued unwinding of the oversold trend condition. The medium-term trend direction is down. The bear trigger lies at 1.0335, the Nov 22 low.
US: Trump Nominates Slater Assistant AG For Antitrust At DOJ
US President-elect Donald Trump has nominated Gail Slater to serve as Assistant Attorney General for the Antitrust Division at the Department of Justice. He also confirms that Michael Faulkender has been tapped as Deputy Treasury Secretary.
- Trump said in a statement on Truth Social: "Big Tech has run wild for years, stifling competition in our most innovative sector... I was proud to fight these abuses in my First Term, and our Department of Justice’s antitrust team will continue that work under Gail’s leadership."
- Trump adds: "Gail previously served at the FTC, in my National Economic Council and, most recently, advising Vice President-Elect JD Vance in his Senate office," indicating that Vance - an antitrust hawk - may be influential in directing antitrust policy in the incoming administration.
- FT noted last week: "Slater’s nomination would signify the new administration’s support for a tough enforcement stance akin to that championed by Biden administration officials — including Jonathan Kanter, current head of the DoJ’s antitrust division, and Lina Khan, FTC chair ...."
- Robin Adelstein at Norton Rose Fulbright noted ahead of the presidential election: "Trump's previous FTC and Department of Justice applied aggressive theories to mergers focused on vertical challenges and nascent competitors. His administration also sued Google in a suit that the DOJ recently won. And Trump's FTC sued Facebook.”
- Trump said on Faulkender: "He will help Treasury Secretary Nominee Scott Bessent usher in a new Golden Age for the United States by delivering a Great Economic Boom for all Americans."
OPTIONS: Primarily Rate Upside Via Call Structures
Wednesday's Europe rates/bond options flow included:
- ERG5 97.62/97.50ps 1x2 bought for 0.5 and 0.75 in 10k.
- ERG5 97.62/97.75/97.87c fly, bought for 2 in 4k.
- ERG5/F5 98.12/98.25cs spread, bought for half in 8k.
- ERH5 97.75/97.87/98.00c fly, sold 1.75 in 2.5k.
- SFIH5 95.55/95.65/95.75c fly, bought for 2.75 in 2k.
