EM LATAM CREDIT: CFE: FV $ 8Y, 12Y WAL

RRP usage rebounds to $5.893B with 14 counterparties this afternoon vs. Monday's $1.523B. Compares to December 12 low of $0.838B (lowest level since mid-March 2021); this years highest excess liquidity measure: $460.731B on June 30.

• RES 4: 1.3661 High Sep 18    
• RES 3: 1.3557 76.4% retracement of the Sep 17 - Nov 4 bear leg 
• RES 2: 1.3527 High Oct 1
• RES 1: 1.3519 High Dec 23
• PRICE: 1.3477 @ 15:39 GMT Dec 23
• SUP 1: 1.3371 Low Dec 22
• SUP 2: 1.3306 50-day EMA
• SUP 3: 1.3180 Low Dec 2 
• SUP 4: 1.3125 Low Nov 26      

The trend condition in GBPUSD remains bullish and this week’s strong start reinforces current conditions. The pair has traded to a fresh short-term cycle high, confirming a resumption of the uptrend that started early November. Note that moving average studies have recently crossed and are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.3527, the Oct 1 high. Initial firm support is 1.3306, the 50-day EMA. 

• Tsy futures show little reaction after $70B 5Y note auction (91282CPN5) draws 3.747% high yield vs. 3.746% WI; 2.35x bid-to-cover vs. 2.41x prior.
• Peripheral stats: Indirect take-up recedes to 59.51% from 61.35% prior, direct take up rises to 31.65% vs. 27.61% prior, while primary dealer take-up recedes to 8.84% vs. 11.04% prior.
• The next 5Y auction is tentatively scheduled for January 27.