OAT: Natixis Recommend Real Yield Entry

The German Bund makes an attempt at 130.21, Friday's high, the Yield dips below 2.65%.

In terms of pure Technical, next resistance in Futures is further out, up to 130.76 (22nd July high).

For the 10yr Yield, Today reference 130.17:

• 2.600% = 130.59.
• 2.585% = 130.74 (22nd July low).

UK Gilt is getting dragged higher, and some big lifts goes through in US Treasuries.

USDJPY continues to push lower, taking its cue from the price action in Yields.

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• President Donald Trump will have lunch with Vice President JD Vance at 12:30 ET 17:30 BST.
• The Senate joined the House on recess until September 2. When lawmakers return to DC, they will have under a month to hammer out a funding deal to avert a government shutdown.
• Trump announced he would fire Bureau of Labor Statistics Commissioner Erika McEntarfer for alleged manipulation of jobs data. Trump said he plans to name a new BLS commissioner - and a new Fed governor to replace Adriana Kugler, who unexpectedly resigned on Friday - this week. Trump noted he is unlikely to fire Fed Chair Powell before his term is up, citing potential market disturbances.
• US trade partners facing reciprocal tariffs are eying last-minute talks this week. USTR Jamieson Greer said tariff rates are "pretty much set". NEC Director Kevin Hassett said a market reaction will not deter Trump.
• Trump is expected to speak with Canadian Prime Minister Mark Carney over the next couple of days.
• Russian President Vladimir Putin played down Trump's Ukraine war 'ultimatum' ahead of a Middle East envoy Steve Witkoff's Moscow visit. Trump’s influential policy advisor, Stephen Miller, accused India of financing Russia's war with Ukraine.
• Israel and the US appear to be pivoting strategy to a comprehensive Gaza deal, backed by the threat of a new offensive operation.
• Poll of the Day: Many Democrats see their party as “weak”. 

Full Article: US DAILY BRIEF 

Tesoro Publico has announced it will be looking to sell a combined E4-5bln of the following Bono/Oblis at its auction this Thursday, August 7:

• the 2.40% May-28 Bono (ISIN: ES0000012O59)
• the 3.20% Oct-35 Obli (ISIN: ES0000012P33)
• the 3.45% Jul-43 Obli (ISIN: ES0000012K95)

Tesoro Publico has also announced it will be looking to sell E250-750mln of the 1.00% Nov-30 Obli-Ei (ISIN: ES00000127C8) at that auction.

Additionally, Tesoro Publico has announced it will be looking to sell a combined E5-6bln of the following letras at its auction tomorrow, August 5:

• the 6-month Feb 6, 2026 letras
• the new 12-month Aug 7, 2026 letras