EM LATAM CREDIT: Grupo Nutresa: USD1bn Tap 5s/10s - Neutral

Rep Anna Paulina Luna (R-FL) has referred Federal Reserve Bank Chair Jerome Powell to the Department of Justice, accusing him of two counts of lying under oath related to the ongoing renovation project at the Fed's Washington D.C., headquarters, per Fox News. Luna, a close ally of Trump, appeared to get ahead of the White House by announcing on X Powell's "imminent" dismissal last week.

• Luna wrote: "On June 25, 2025, Chairman Powell provided testimony under oath before the Senate [Banking] Committee regarding the renovation of the Federal Reserve’s Eccles Building. In his statements, he made several materially false claims."
• Luna previewed the referral in a message on X on July 17: "I am criminally referring Jerome Powell to the DOJ to investigate perjury regarding his crazy $2.5BN building."
• Treasury Secretary Scott Bessent told CNBC this morning that he will “be at the Fed on Monday,” adding that the “entire Federal Reserve institution” needs to be examined. When asked about President Trump forcing Powell out, Bessent said he is “not going to engage in hypotheticals”.
• In an apparent response to the White House accusations, the Fed updated its website today with a new section detailing the DC renovation project.
• Former Fed lawyer Cornelius Hurley told MNI that Powell would likely prevail in court and get to serve out his term even if Trump goes through with threats of firing him. See: MNI INTERVIEW: Powell Would Win In Court If Trump Fires Him

• EUR/USD: Jul23 $1.1790-00(E1.4bln), $1.1850-70(E1.3bln); Jul24 $1.1620-30(E4.0bln), $1.1645-55(E2.0bln), $1.1700(E1.8bln), $1.1750-60(E1.1bln); Jul25 $1.1740-50(E1.2bln)
• USD/JPY: Jul23 Y146.55-65($1.2bln), Y148.00-20($1.4bln); Jul24 Y147.00-10($1.1bln), Y147.50($1.5bln)
• USD/CAD: Jul23 C$1.3625-40($1.1bln); Jul25 C$1.3700-20($1.2bln)

• RES 4: 112-15   61.8% retracement of the Apr 7 - 11 sell-off
• RES 3: 112-12+ High Jul 1 and a bull trigger
• RES 2: 111-13+/111-28 High Jul 10 / High Jul 3 
• RES 1: 111-09+   High Jul 21  
• PRICE:‌‌ 111-08+ @ 17:16 BST Jul 21
• SUP 1: 110-08+ Low Jul 14 & 16        
• SUP 2: 110-03   76.4% retracement of the May 22 - Jul 1 bull leg
• SUP 3: 109-28   Low Jun 6 and 11
• SUP 4: 109.25   Low May 27

Treasury futures have started the week on a firmer note, extending the recovery that began on Jul 15. The move higher has resulted in a break of the 20-day EMA, strengthening the recovery, and this has exposed resistance at 111-13+, the Jul 10 high. Clearance of this level would highlight a stronger reversal. Key support lies at 110-08+, the low on Jul 14 and 16. A break of this support would reinstate the recent bearish theme.