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• RES 4: 111-30   76.4% retracement of the May 1 - 22 downleg
• RES 3: 111-21   1.0% 10-dma envelope
• RES 2: 111-14+ High Jun 5 & 61.8% of the May 1 - 22 downleg
• RES 1: 111-13   High Jun 13 
• PRICE:‌‌ 110-18+ @ 11:01 BST Jun 16
• SUP 1: 109-28   Low Jun 6 / 11         
• SUP 2: 109-12+ Low May 22 and the bear trigger 
• SUP 3: 109-09+ Low Apr 11 and key support
• SUP 4: 108-25+ 0.764 proj of the Apr 7 - 11 - May 1 price swing

Treasury futures remain below key resistance and its recent high at 111-14+,  a Fibonacci retracement and the Jun 5 high. Clearance of this hurdle would be bullish and highlight a stronger reversal. This would open 111-30, a Fibonacci retracement. On the downside, support to watch lies at 109-28, the Jun 6 / 11 low. Clearance of this level would be bearish and open the bear trigger at 109-12+, May 22 low.

"The EU has mandated BofA Securities, Goldman Sachs Bank Europe SE, NatWest, Societe Generale and UBS as Joint Lead Managers for its upcoming Fixed Rate RegS Bearer increase of the EU 3.375% benchmark due 4 October 2039 (EU000A3LZ0X9). No further group. The transaction will be launched tomorrow, subject to market conditions."

From market source

MNI pencils in a transaction size of E5-9bln (point estimate E6bln).

The Bundesbank gives some views on the future development of the ECB's balance sheet as well as the setup of future structured operations as part of a broader regular monthly report. The below is translated from German with MNI emphasis in bold. The still open nature of structural considerations shouldn't be a surprise (see comments from Cipollone below) although the Bundesbank hints at perhaps an even longer wait to see them. 

• "Operations are to be introduced in the future that will contribute significantly to meeting the structural liquidity needs of the banking system. In addition to separate structural longer-term refinancing operations, this will also include a structural portfolio. The design of these structural operations is currently still open. From the Bundesbank's point of view, appropriately designed structural refinancing operations will be able to cover the majority of the banking system's structural liquidity needs in the future. However, such operations are likely to be introduced at a later date, as the banking system is expected to have a structural liquidity surplus vis-à-vis the Eurosystem for several years to come. The Bundesbank expects structural refinancing operations to be introduced before a structural portfolio is established."
• "In the coming years, the Eurosystem’s balance sheet is expected to shrink significantly, mainly because the securities purchased by the Eurosystem since 2014 under its monetary policy asset purchase programs will gradually mature, while demand in the regular monetary policy refinancing operations is likely to increase slowly at first from a very low level. The Eurosystem estimates excess liquidity at around €1,500 billion at the end of 2027 (with monetary policy securities holdings still at around €2,800 billion). However, future excess liquidity resulting from the aggregate demand of monetary policy counterparties for main refinancing operations and longer-term refinancing operations is likely to be lower."

• ECB's Cipollone told MNI at an event in February that the ECB will reassess its position on the structural portfolio in 2026 as liquidity needs are currently fulfilled by the legacy portfolios. When asked his preference on weights between structural bond portfolio and structural refi operations in the future, "my personal preference is we should provide banks with sufficient liquidity in a structural way so that they have enough reserves to face unforeseen volatility, but also reserves they can count on to extend credit to the economy."
• For the latest look at ECB balance sheet developments, see our weekly tracker, here.