JGBS: Bonds Unwind Initial Post-BoJ Cheapening, Lab Mkt Data Tomorrow

• RES 4: 1.1923 2.000 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 3: 1.1851 High Sep 10 2021 
• RES 2: 1.1821 High Sep 16 2021
• RES 1: 1.1807 Intraday high 
• PRICE: 1.1786 @ 06:09 BST Jul 1
• SUP 1: 1.1631 High Jun 12 and a recent breakout level
• SUP 2: 1.1554 20-day EMA
• SUP 3: 1.1446 Low Jun 19  
• SUP 4: 1.1389 50-day EMA

The trend set-up in EURUSD remains bullish and the pair continues to appreciate. Last week’s gains resulted in a breach of resistance and a bull trigger at 1.1631, the Jun 12 high. This confirms a resumption of the trend. The 1.1800 handle has been pierced, sights are on 1.1821, the Sep 16 2021 high. Key short-term support to watch lies at 1.1554, the 20-day EMA. A clear break of this average is required to signal scope for a deeper retracement.

ACGBs (YM +3.0 & XM +5.0) are trading moderately stronger on another relatively subdued data-light Sydney session.  

• Cash US tsys are 1-2bps richer, with a flattening bias, in today's Asia-Pac session, extending yesterday's bull-flattener. Today’s US calendar: S&P Global US Man PMI, Wards Total Vehicle Sales, ISM Manufacturing, Construction Spending, JOLTS, Dallas Fed Services Activity.
• Top U.S. trade officials are now seeking narrower agreements with other countries to secure deals before President Donald Trump's July 9 tariff deadline, the Financial Times reported on Tuesday, citing people familiar with the talks.
• The cash 10-year is 5bps richer, with the AU-US 10-year yield differential at -9bps.
• The bills strip is slightly mixed, with flat to +3.
• RBA-dated OIS pricing is flat to modestly softer across meetings today. A 25bp rate cut in July is given a 95% probability, with a cumulative 83bps of easing priced by year-end (based on an effective cash rate of 3.84%).
• Tomorrow, the local calendar will see Building Approvals and Retail Sales data.
• This week, the AOFM plans to sell A$1200mn of the 2.75% 21 June 2035 bond tomorrow and A$1000mn of the 2.25% 21 May 2028 bond on Friday.

The KOSPI lead the way for the region's major bourses as hopes remain high that the new government will deliver on the long held plans to revise the commercial act. The Shenzhen Exchange has issued new rules to simplify the process for tech funds listed on the the ChiNext to raise funds.  The Philippines has cut the transaction costs for stock trading in a move seen to improve liquidity on the PSEi.  

• China's major bourses were mixed today with the Hang Seng lower by -0.85% whilst the CSI 300 was up +0.05%, Shanghai Comp +0.20% and Shenzhen fell by -0.95%
• The KOSPI was one of the best regional performers rising +1.08%.
• The FTSE Malay KLCI did very little, up just +0.04%
• The Jakarta Composite fell -0.27%
• The NIFTY 50 is up just +0.10% in a bid to recover from yesterday's fall of -0.47%