MALAYSIA: Country Wrap: Local Bank Sees GDP at +4.3%

JGB futures are sharply weaker and hovering near session lows, -46 compared to settlement levels.

• (Bloomberg) " The Bank of Japan finished selling millions of dollars of stocks it bought from besieged banks, ending a nearly two decade process. The BOJ's holdings of the shares purchased from banks hit zero as of July 10, falling from 2.5 billion 10 days ago, according to its balance sheet report."
• "JAPAN RULING BLOC MAY LOSE MAJORITY IN ELECTION: JNN ANALYSIS" – BBG
• Cash US tsys are slightly cheaper, with a steepening bias, in today's Asia-Pac session after Friday's bear-steepener.
• Cash JGBs are flat to 4bps cheaper across benchmarks, with the 20-year leading. The benchmark 10-year yield is 6.4bps higher at 2.578% versus the cycle high of 2.605%.
• Swap rates are flat to 6bps higher, with a steeper curve. Swap spreads are tighter out to the 20-year and wider beyond.
• Tomorrow, the local calendar will be empty apart from 5-year Climate Transition supply.

• RES 4: 131.95 High Jun 13 and the bull trigger
• RES 3: 131.33 High Jun 20  
• RES 2: 130.76 High Jul 4
• RES 1: 130.10/130.56 High Jul 8 / 50-day EMA
• PRICE: 129.26 @ 05:50 BST Jul 14
• SUP 1: 129.12 Low Jul 11 
• SUP 2: 128.97 Low May 14 and a reversal trigger
• SUP 3: 128.90 Low Apr 10 
• SUP 4: 128.40 Low Apr 9

Bund futures traded lower last week, and a bear cycle remains intact. Friday’s extension resulted in a break of 129.30, the May 22 low. The breach strengthens the current bearish theme and exposes the next key support at 128.97, the May 14 low and a bear trigger. On the upside, resistance around the the 50-day EMA, at 130.36, marks the key short-term hurdle. A clear breach of it is required to highlight a possible reversal.

Bitcoin has had a range of $118 312.80 - $121 365.19 in the Asia- Pac session, it is currently trading around $121 280, +1.80%. Bitcoin is making new all time highs through $120 000 this morning as the market and institutional in particular seem to be getting ahead of what they perceive to be an important week for the industry. 

• (Bloomberg) - ‘House Plans ‘Crypto Week’ to pass Stablecoin, Other Bills. House Republicans are turning their attention toward advancing President Trump’s cryptocurrency agenda as they seek to send landmark stablecoin legislation to the president’s desk and advance other digital currency legislation. The week of July 14 is set to be “Crypto Week.”
• Lance Roberts on X:“There has been a lot of talk about the demise of the dollar, even though it still comprises 58% of foreign reserves. However, one thing that could change that is the rise of stablecoins, where 99% of all stablecoins are pegged to the dollar. If the world goes digital, as expected, the dollar may be the dominant reserve."
• Andreas Steno Larsen - “Big week in relation to the legislative landscape for BTC/Crypto in the US next week and BTC is making a weekend breakout as we speak. ”

Fig 1 : Bitcoin Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P