CZECHIA: Debt Auction & Cabinet Meeting On Radar

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.

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.

• 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.