ENERGY: Canada Week: S&P Global Raises Oil Sands Outlook

Roll pace Update, pretty much all done. All the Volume in US Treasuries is just spread related, and September is front Month.

• WNA: 86%%.
• USA: 87%.
• UXY: 81%.
• TYA: 82%.
• FVA: 82%.
• TUA: 81%.
• Gilt 95%.

• In the FI space, recent gains in Bund futures suggest the move down between Apr 22 - May 15, has been a correction. A stronger resumption of gains would strengthen the reversal and signal scope for a climb towards 132.03, the Apr 7 high. This week’s climb reinforces a bullish theme. Key short-term support to watch is 129.13, the May 15 low. A break would be bearish and mark a resumption of the recent bear cycle.
• A bear cycle in Gilt futures remains in play and last week’s move lower reinforces the bearish theme. The contract has recovered from its recent lows - gains are considered corrective and this is allowing a short-term oversold condition to unwind. The bear trigger has been defined at 90.11, the May 22 low. Key short-term resistance to watch is 91.87, the May 20 high. It has been pierced, a clear break of this level is required to highlight a stronger reversal.

The EU has announced it will be looking to sell the following at its auction next Monday, June 2:

• Up to E2.5bln of the 2.625% Jul-28 EU-bond (ISIN: EU000A4D5QM6)
• Up to E2.0bln of the 2.75% Feb-33 Green EU-bond (ISIN: EU000A3K4DW8)
• Up to E1.5bln of the 3.375% Nov-42 EU-bond (ISIN: EU000A3K4DV0)