CZECHIA: Debt Auction & Cabinet Meeting On Radar
- Prime Minister Petr Fiala (Spolu) and Interior Minister Vít Rakušan (STAN) pledged not to cooperate with the main opposition ANO party regardless of the outcome of the upcoming parliamentary elections. This joint commitment was intended as a demonstration of resolve, but also limits their options for the aftermath of the elections, in which ANO is widely expected to win at least a comfortable plurality of seats.
- Seznam Zprávy wrote that Spolu and STAN are set to clash over Finance Minister Zbyněk Stanjura's draft budget later today, as STAN remains critical of some of Stanjura's spending-cut proposals.
- Prime Minister Fiala signalled that Czechia might withdraw from international conventions banning cluster munitions and anti-personnel mines.
- The Finance Ministry will offer for sale CZK4.0bn of 6.20% 2031 bonds, CZK5.0bn of 4.25% 2034 bonds and CZK1.0bn of 4.00% 2044 bonds.
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EGBS: Peripherals Outperform As Equities Rally
German yields are now 1.5-2.5bp lower across the curve, with the belly & intermediates outperforming.
- EGB spreads to Bunds are little changed to 1bp tighter, with the periphery outperforming as equities firm in the wake of the U.S.-EU trade deal.
- Ongoing adjustments to that deal and focus on the Sino-U.S. meeting in Stockholm are noted.
BONDS: Firmer Again
No fresh headlines as core global FI futures firm and equity index futures tick away from best levels. Bunds close the opening gap lower, while TY futures trade to the highest level seen since Wednesday.
- Note that Euro Stoxx 50 futures were not able to test early July highs, before a pullback from best levels accelerated around the cash equity open.
SILVER TECHS: Bullish Trend Sequence
- RES 4: $41.064 - 1.764 proj of the Apr 7 - 25 - May 15 swing
- RES 3: $40.285 - 1.618 proj of the Apr 7 - 25 - May 15 swing
- RES 2: $40.000 - Psychological round number
- RES 1: $39.655 - 1.500 proj of the Apr 7 - 25 - May 15 swing
- PRICE: $38.301 @ 08:12 BST Jul 28
- SUP 1: $37.809 - 20-day EMA
- SUP 2: $36.382 - 50-day EMA
- SUP 3: $35.285 - Low Jun 24
- SUP 4: $33.967 - Low Jun 3
Trend signals in Silver are unchanged, they remain bullish. Gains early last week reinforce current trend conditions - the metal traded above resistance at $39.132, the Jul 14 high. The break confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on $39.655 next, a Fibonacci projection. On the downside, initial support to watch lies at $37.809, the 20-day EMA.
