EU CREDIT UPDATE: Mundys (ATLIM; Ba1 (new)/BB+/BB): Moody's Upgrade

• A contained 21 ticks range for the German Bund overnight, the contract is closer to flat but remains closer to last Week's low of 130.12, the initial support area.
• Resistance moves up to 130.85.
• There's very little of note at the start of the Week on the Data front, today sees, US final Wholesales, and NY Inflation expectations.
• US and China trade talks are set to resume in London Today, focus is said to be on Rare Earth and Technology.
• Aside from the US CPI, Bond Traders and broader Investors will be watching the US Supply Demand this Week, the 3yr (tue), 10yr Reopening (wed), and 30yr (thu).
• Overall Supply in Europe is on the lighter side versus last Week, Rate Desks will start to focus on the Euribor front Month Expiry, ERM5 expires next Week on Monday 16th June.
• SPEAKERS: ECB Elderson, Escriva, while the Fed is in Blackout period.

• RES 4: 122.35 2.500 proj of the May 14 - 20 - 21 price swing
• RES 3: 122.00 Round number resistance
• RES 2: 121.65 2.000 proj of the May 14 - 20 - 21 price swing
• RES 1: 121.32 High Jun 5 
• PRICE: 120.63 @ Close Jun 6 
• SUP 1: 120.08 20-day EMA      
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

A bull cycle in BTP futures remains intact and last Thursday’s pullback is for now considered corrective. Resistance and a bull trigger at 119.70, the Apr 24 high, has been cleared. This confirms a resumption of the uptrend and opens 121.12 next, a Fibonacci projection. Key support to watch lies at 118.51, the May 14 low. A clear break of this level would highlight a reversal. First support lies at 120.08, the 20-day EMA.

• RES 4: 93.05 1.382 proj of the May 22 - 27 - 29 price swing
• RES 3: 93.00 Round number resistance      
• RES 2: 92.79 1.236 proj of the May 22 - 27 - 29 price swing
• RES 1: 92.63 High Jun 5  
• PRICE: 91.83 @ Close Jun 6
• SUP 1: 91.44 Low Jun 4 
• SUP 2: 91.16/90.59 Low Jun 2 / Low May 29
• SUP 3: 90.11 Low May 22 and the bear trigger   
• SUP 4: 90.00 Round number support        

Gilt futures continue to trade closer to their recent highs. The latest rally undermines the recent bearish theme - a key short-term resistance at 91.87, the May 20 high, has been cleared. This signals scope for an extension higher and sights are on 92.79, a Fibonacci projection. Initial firm support has been defined at 91.44, the Jun 4 low. A break of this support is required to signal a possible reversal.