US 10YR FUTURE TECHS: (H5) Bull Cycle Remains In Play
- RES 4: 110-25 High Dec 12
- RES 3: 110-19 76.4% retracement of the Dec 6 - Jan 13 bear leg
- RES 2: 110-03+ High Dec 6
- RES 1: 109-30 61.8% retracement of the Dec 6 - Jan 13 bear leg
- PRICE: 109-15 @ 16:58 GMT Feb 6
- SUP 1: 108-20+ Low Feb 4
- SUP 2: 108-06/107-06 Low Jan 23 / 13 and the bear trigger
- SUP 3: 107-04 Low Apr 25 ‘24 and a key support
- SUP 4: 106-11 2.00 proj of the Oct 1 - 14 - 16 price swing
A bull phase in Treasury futures remains in play and Wednesday’s rally reinforces current conditions. Price has traded through the 50-day EMA of 109-10+. This highlights potential for a stronger reversal and sights are on 109.30, a Fibonacci retracement. On the downside, initial support to watch is 108-20+, Tuesday’s low. Clearance of it would signal a reversal and the end of a corrective cycle.
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US: Trump Announces DAMAC Investment, Pledges To Reverse Biden Offshore Oil Ban
US President-elect Donald Trump, speaking to the press for the first time since Congress certified his election win yesterday, has announced that Emirati firm DAMAC Properties will invest "at least USD$20 billion dollars over a very short period of time" to build "massive" new data centres in the Southwest and Sun Belt of the United States.
- Trump, speaking alongside DAMAC founder Hussain Sajwani, noted a campaign trail pledge to "move quickly through the environmental process" anyone who invests over USD$1 billion in the US.
- Trump also pledged to reverse a measure announced by President Biden this week that would indefinitely ban new offshore oil and gas production in large swathes of US coastal waters: "I will reverse it immediately, it will be done immediately and we will drill baby drill... and the energy costs are going to come way down."
- It is unclear if Trump has the authority to reverse the ban, Axios noted on the measure: "The steps rely on a provision from a 72-year-old law and affect wildlife-rich areas in the northern Bering Sea; the eastern Pacific Ocean off the West Coast; the eastern Gulf of Mexico; and areas up and down the East Coast... Unlike executive orders that Trump could overturn with the stroke of a pen, Biden's actions rely on an open-ended provision in the 1953 Outer Continental Shelf Lands Act."
ITALY T-BILL AUCTION PREVIEW: On offer this week
MEF has announced it will be looking to sell E8.0bln of the new 12-month Jan 14, 2026 BOT at its auction this Friday, Jan 10.
FED: US TSY 42D AUCTION: HIGH RATE 4.245%; 47.73% AT HIGH
- US TSY 42D AUCTION: HIGH RATE 4.245%; 47.73% AT HIGH
- US TSY 42D BILL AUCTION: DEALERS TAKE 42.66% OF COMPETITIVES
- US TSY 42D BILL AUCTION: DIRECTS TAKE 4.49% OF COMPETITIVES
- US TSY 42D BILL AUCTION: INDIRECTS TAKE 52.85% OF COMPETITIVES
- US TSY 42D AUCTION: BID/COVER 2.71
