CHINA: Country Wrap: Financial Support for New Industrialization

• RES 4: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing 
• RES 3: 0.8738 High Apr 11 high and a key resistance
• RES 2: 0.8694 High Apr 14 
• RES 1: 0.8670 High Jul 02
• PRICE: 0.8642 @ 06:43 BST Jul 7
• SUP 1: 0.8606 Low Jul 3 
• SUP 2: 0.8550/8503 20- and 50-day EMA values 
• SUP 3: 0.8459 Low Jun 11
• SUP 4: 0.8407 Low Jun 4

The trend condition in EURGBP is unchanged, it remains bullish and last week’s gains reinforce current conditions. Moving average studies are in a bull-mode position - highlighting a dominant uptrend. 0.8648, 76.4% of the Apr 11 - May 29 downleg, has been pierced. A continuation higher would open 0.8738, the Apr 11 high and a key resistance. Support to watch lies at 0.8541, the 20-day EMA.

• RES 4: 107.690 High Apr 30 
• RES 3: 107.610 High May 23 and a key near-term resistance
• RES 2: 107.430/475 High Jun 13 / High May 27
• RES 1: 107.365 Intraday high  
• PRICE: 107.340 @ 06:14 BST Jul 7
• SUP 1: 107.195/180 Low Jun 6 / 23    
• SUP 2: 107.125 Low May 12 and a key support
• SUP 3: 107.000 Round number support 
• SUP 4: 106.890 2.000 proj of the May 23 - 29 - 30 price swing

Schatz futures remain inside a range and price continues to trade below the Jun 13 high. Support to watch is 107.195, the Jun 6 low. It has been pierced, a clear break of it would reinstate a bearish threat and signal scope for an extension towards 107.125, the May 12 low. On the upside, clearance of 107.470, the May 30 high, is required to strengthen a bullish condition. Initial firm resistance is 107.430, the Jun 13 high.

Germany, the Netherlands, France, Spain, Belgium and Italy are due to sell bills this week. We expect issuance to be E27.6bln in first round operations, up from E20.6bln last week.

• This morning, Germany will look to sell E3bln of the 6-month Jan 14, 2026 Bubill and E1bln of the 11-month Jun 17, 2026 Bubill. This will be the first auction of the 11-month bubill since its re-introduction was announced in DFA's Q3 issuance plan.
• Also this morning, the Netherlands will look to issue E1.0-2.0bln of the 3-month Sep 29, 2025 DTC and E0.5-1.5bln of the 4-month Oct 30, 2025 DTC.
• This afternoon, France will look to come to the market with up to E7.5bln of 14/15/27/49-week BTFs: E2.7-3.1bln of the new 14-week Oct 15, 2025 BTF, E0.0-0.4bln of the 15-week Oct 22, 2025 BTF, E1.8-2.2bln of the 27-week Jan 14, 2026 BTF and E1.4-1.8bln of the 49-week Jun 17, 2026 BTF.
• Tomorrow morning, Spain will look to sell the 3-month Oct 10, 2025 letras and the 9-month Apr 10, 2026 letras, with size details to be announced today.
• Also tomorrow, Belgium will look to issue E2.6-3.0bln of TCs: An indicative E1.0bln of the 3-month Oct 16, 2025 TC and an indicative E1.8bln of the new 12-month Jul 9, 2026 TC.
• Finally on Thursday, Italy will look to hold a BOT auction. A new 12-month BOT will be on offer, potentially alongside another BOT. Details will be announced today.