USDJPY TECHS: Finds Support

Finland has announced it will be looking to sell a combined maximum of E2.0bln of the following RFTBs at its auction next Tuesday, September 9:

• the 8-month May 13, 2026 RFTB
• the new 11-month Aug 13, 2026 RFTB
   

• RES 4: 5568.00 High Mar 6
• RES 3: 5526.00 High Mar 19 / 20 (cont) 
• RES 2: 5445.00/5522.00 High Aug 26 / 22
• RES 1: 5392.75 20-day EMA 
• PRICE: 5317.00 @ 06:42 BST Sep 3
• SUP 1: 5292.00 Low Sep 2 
• SUP 2: 5280.00 Low Aug 7  
• SUP 3: 5250.02 76.4% retracement of the Aug 1 - 22 rally  
• SUP 4: 5166.00 Low Aug 1 and key support  

The primary trend set-up in Eurostoxx 50 futures is bullish and the pullback from the Aug 22 high appears corrective. However, the contract has breached 5372.85, the 50-day EMA. The clear break of this average strengthens a short-term bearish threat and signals scope for a deeper retracement towards 5166.00, the Aug 1 low and a key support. On the upside, initial resistance to watch is 5392.75, the 20-day EMA.

Lithuania is likely to hold a syndicated transaction today, Germany will hold an auction and books will close on Belgium’s latest Bons d’ Etat retail offering. Spain and France are due to hold auctions tomorrow while Belgium will hold an ORI operation on Friday. The EFSF and Italy have held syndicated transactions already this week, while Germany held an auction yesterday. We pencil in issuance of E48.7bln for the week (excluding retail) up a little from E29.5bln last week.

For the full MNI EGB Supply Daily with a recap of issuance so far this week and a look ahead to this week and next week's issuance, click here. 

• Lithuania has sent a mandate for a potential EUR-denominated dual tranche syndicated LITHUN transaction, consisting of a long 10-year maturity and a 20-year maturity to be launched in the near future, subject to market conditions. We expect the transaction today.
  • Lithuania's issuance plan for 2025 sees a E6.0bln Eurobonds issuance target. E2.0bln was raised at syndication in January (dual-tranche 5/15-year) and we calculate just under E1.2bln has been sold at auction.
  • This leaves E2.0bln as our expected size (split equally between the two tranches). We see two-way risks to this (towards either E1.5bln or E2.5bln).
• Germany will return to the market today, with E5bln of the 10-year 2.60% Aug-35 Bund (ISIN: DE000BU2Z056) on offer.
• Also today, the subscription period for Belgium’s Bons d’ Etat is scheduled to close. Two lines are on offer for retail investors: the 1-year 1.90% Sep-26 Bons d' Etat (ISIN: BE3871306366) and the 10-year 3.20% Sep-35 Bons d' Etat (ISIN: BE3871307372).
  • After the first five days (to Monday 1 September), E296.4mln of the 1-year and E72.4mln of the 10-year had been taken up.