OIL PRODUCTS: India Oil Product Consumption the Highest Since March 2024

• In the FI space, Bund futures remain below their most recent highs. Despite the latest move down, a bull cycle is intact and the sell-off between Apr 7 - 9 is considered corrective. Sights are on resistance at 132.03, the Apr 7 high and a bull trigger. A clear break of this level would confirm a resumption of the uptrend and open 132.56, the Feb 28 high. Firm support lies at 128.60, Apr 9 low. A breach of it would alter the picture. First support is 130.54, the 50-day EMA.
• A bull cycle in Gilt futures remains intact and short-term weakness is - for now - considered corrective. Tuesday’s low print resulted in a test of support at the 50-day EMA, at 92.47. A clear break of this average would signal scope for a deeper retracement and expose 91.73, the Apr 17 low. On the upside, a resumption of gains would open 94.50, the Apr 7 high and a key resistance. Initial firm resistance to monitor is 93.93, the May 2 high.

• The BTP and the OAT futures are still leading in EGBs, the initial bid in OAT and wider Bonds came after the French heavy supply.
• Desks will look for the big resistance at 120.57 initially (see chart).
• Bund is still finding some resistance ahead of 131.24, but worth keeping an eye on BTP and OAT, although big moves could be limited ahead of the FOMC.

BTP Basis trade, suggest Cash buyer:

• IKM5 ~2k at 120.13.