CROSS ASSET: GBP and EUR edge to session highs
Feb-02 07:33
- The Dollar leans in the red going into the European session, weighted by the recovery in Equities Yesterday and into the overnight session.
- Estoxx futures (VGH4) gaped higher to print another new contract overnight, and although off its best level going into the Cash Govie open, the contract is still up 35 points.
- In the US, Emini is just 6 points off its contract high, printed Yesterday at 4963.75.
- Overall the USD is down across G10s over a 5 days period, and today, AUD is the best performer, up 0.37%, aided by the recovery in Risk.
- The Greenback now test intraday low against the GBP, EUR, and resistance in Cable is seen towards 1.2775 High Jan 24.
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BONDS: Light Pressure As London Comes Online
Jan-03 07:25
Little in the way of meaningful headline flow apparent as Bunds and TY futures slip to fresh session lows.
- Bund futures haven’t tested Tuesday’s low, while TY has probed its own Tuesday base.
- Cash Tsys were closed in Asia-Pac hours, with Japan out on holiday until tomorrow. They sit ~3bp lower across the curve in early London dealing.
- A quick reminder that a brisk start for ’24 IG issuance, oil market swings, geopolitical issues and a reassessment of the year-end rally all factored into bond trading on Tuesday.
BUNDS: Pushing lower since the Cash open
Jan-03 07:22
- A Very light and tight range session in Bund and also seen across the Euribor strip, with just around 500 lots traded in each expiries pre Bund cash open.
- Bund was quoted two ticks wide going into the cash open, but drifting lower in low volumes since.
- Support comes at 136.25, Yesterday's low, while better is seen at the 135.81 area.
- Resistance moves down to 137.14/137.17 initially.
- Today sees, Spanish and German employment, and out of the US, ISM Mfg and JOLTS.
- FOMC Minutes are also due but unlikely to be a mover, with near term focus squarely on Data releases.
- SUPPLY: German EU4.5bn Schatz 2yr (equates to 42.9k Schatz) should weigh into the bidding deadline.
- SYNDICATION: Slovenia 10yr Benchmark.
STIR: SFRH4 Given
Jan-03 07:16
SFRH4 activity continues, with ~6K now given at 94.955.
