BONDS: BTP/Bund spread a touch wider
Jul-11 07:25
- The BTP future was initially outperforming EGBs, but a small pick up in volume to the downside is pushing the contract down to its very tight 15 ticks range low.
- Early focus for Govie desks will be on the heavy Italian supply.
- The BTP/Bund spread started the session tighter, and eyed a test towards the June low situated circa ~127.72bps, but now sits just a touch wider.
- Bund is steady, has traded in a 9 ticks range for the past 50 minutes.
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GBP: EURGBP tests session high
Jun-11 07:22
- Further push lower in Cable helps the EURGBP towards its session high, a continuation post UK Data.
- Resistance in EURGBP is a little further out, up to 0.8484/8519 Low May 29 / 20-day EMA.
BONDS: OAT underpeforms EGBs
Jun-11 07:08
- French OAT underperforms EGBs once again in early trade albeit just off its intraday low.
- The contract found support at the 3.25% yield resistance, which equated to 123.11 Yesterday, printed a 123.15 low and a 3.237% high.
- Today, reference 123.26, the 3.25% Yield is lower and equates to 123.06.
- For the OAT/Bund spread, it is juts half a basis point wider, but still eye the 56.00bps level, 61.8% retrace of the Oct 2023/March 2024 tightening bias.
Chart source: MNI/Bloomberg.
SILVER TECHS: Sell-Off Exposes Support At The 50-Day EMA
Jun-11 07:04
- RES 4: $35.736 - 1.236 proj of Jan 22 - Apr 12 - May 2 price swing
- RES 3: $35.226 - 50.0% of the Apr 2011 - Mar 2020 bear leg
- RES 2: $33.880 - 1.00 proj of the Jan 22 - Apr 12 - May 2 price swing
- RES 1: $32.518 - High May 20 and the bull trigger
- PRICE: $29.111@ 08:03 BST Jun 11
- SUP 1: $29.036 - Intraday low
- SUP 2: $28.718 - 50-day EMA
- SUP 3: $26.018 - Low May 2
- SUP 4: $24.328 - Low Mar 27
Silver traded lower Friday and cleared support at $29.381, the Jun 4 low. The break signals scope for a deeper short-term retracement. Note that the current corrective cycle is allowing a recent overbought condition to unwind. Support to watch lies at the 50-day EMA, at $28.718. A clear break of this average would strengthen a bearish theme. For bulls, a reversal higher would refocus attention on key resistance at $32.518, the May 20 high.
