US-CHINA: Headlines From Chinese State Media On Rubio Meeting
Jul-11 11:00
* "CHINA'S FOREIGN MINISTER WANG YI, IN MEETING WITH RUBIO: HOPES US TO LOOK AT CHINA RATIONALLY, ...
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OUTLOOK: Price Signal Summary - USDJPY Corrective Cycle Still In Play
Jun-11 11:00
- In FX, EURUSD is unchanged and continues to hold on to the bulk of its recent gains. The breach of 1.1419, May 26 high, confirmed an extension of the current bull cycle and sights are on 1.1573, the Apr 21 high and bull trigger. MA studies are in a bull-mode position, highlighting a dominant uptrend. Support to watch is 1.1232, the 50-day EMA. A clear break of this average would undermine the bull theme. Initial support is 1.1356, the 20-day EMA.
- Trend signals in GBPUSD remain bullish and the latest pullback appears to be corrective. A fresh cycle high last week, confirmed a resumption of the uptrend and an extension of the price sequence of higher highs and higher lows. This opens 1.3681 next,the 1.500 projection of the Feb 28 - Apr 3 - 7 price swing. Support at 1.3466, the 20-day EMA, has been pierced. A clear break of it would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3306.
- A short-term bull cycle in USDJPY remains in play - for now. The latest recovery is considered corrective and the trend condition is bearish. A resumption of weakness would open 142.12, the May 27 low. A clear break of this level would confirm a continuation of the bear leg and open 139.89, the Apr 22 low. MA studies remain in a clear bear-mode position too, highlighting a dominant downtrend. Key short-term resistance is 146.28, the May 29 high.
MNI: US MBA: MARKET COMPOSITE +12.5% SA THRU JUN 06 WK
Jun-11 11:00
- MNI: US MBA: MARKET COMPOSITE +12.5% SA THRU JUN 06 WK
US TSYS: Bear Steeper In Another Lighter Start Before CPI and 10Y Supply
Jun-11 10:49
- Treasuries are bear steeper as they extend yesterday’s post-1000ET sell-off, with CPI in focus (MNI Preview) before 10Y supply. For the latter, long-end pressures are less acute than has been the case in previous months but it will nevertheless mark an important test of duration demand.
- A federal appeals court yesterday extended a short-term reprieve for the Trump Administration as it challenges last month’s trade court ruling that blocked tariffs. Trump has just now described this as a “great and important win for the US”.
- Today’s China statement after a conclusion of US-China talks offered nothing concrete. It urged dispute resolution via dialog, vowed to reduce the misunderstanding and promoted the long-term development of China-US ties.
- Cash yields are 1-4bp higher, with increases led by 20s and 30s.
- The modest steepening sees curves lift a little further off what had been flats for recent weeks, including 2s10s at 47.5bp (+1.9bp) and 5s30s at 86.5bp (+2bp).
- TYU5 has recently touched a session low of 110-00+ (- 06) on another overnight session with light volumes, currently at 240k.
- It extends a pullback off yesterday’s high of 110-14 having stopped short of testing 110-19+ (50-day EMA). A bearish threat is still present, with support at 109-26 (May 29 low) before a bear trigger at 109-12+ (May 22 low).
- Data: CPI May (0830ET), Real av earnings May (0830ET), Federal budget balance May (1400ET)
- Coupon issuance: US Tsy $39B 10Y Note re-open - 91282CNC1 (1300ET). Last month’s 10Y saw a strong 1.3bp stop through but with weaker details than the previous auction.
- Bill issuance: US Tsy $60B 17W bill auction (1130ET)
- Bloomberg reports that HK pensions plan to sell down their Treasury holdings within three months if the US loses its last AAA rating (by Japan’s Rating & Investment Information Inc.)
