PERU: New Finance Minister Says No New State Funding For Petroperu Planned

The $13B 20Y Bond auction saw a 0.4bp trade-through, with a high yield of 4.810% vs a 4.814% When-Issued yield at cutoff.

• This was a smaller trade-through than prior (1.4bp in March), but was the 3rd in the last 4 auctions.
• As with the trade-through, the main peripheral statistics were weaker than March's but overall largely in line with the past 5-auction average: bid-cover of 2.63x (5-auction average 2.56x) and primary dealer takedown 17.0% (15.5% avg)
• Notably, indirects took a relatively high 70.7% (66.6% avg), the highest in 8 auctions and a potential signal of foreign demand for the Bond - with directs taking a lesser 12.3% (18.0% avg).
• Treasury futures ticked slightly higher after the auction results.

• US TSY 19Y-10M BOND AUCTION: HIGH YLD 4.810%; ALLOT 6.47%
• US TSY 19Y-10M BOND AUCTION: DEALERS TAKE 16.99% OF COMPETITIVES
• US TSY 19Y-10M BOND AUCTION: DIRECTS TAKE 12.32% OF COMPETITIVES
• US TSY 19Y-10M BOND AUCTION: INDIRECTS TAKE 70.68% OF COMPETITIVES
• US TSY 19Y-10M BOND AUCTION: BID/COV 2.63

• RES 4: 1.1608 High Nov 9 2021
• RES 3: 1.1555 1.382 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 2: 1.1495 High Feb 10 2022 
• RES 1: 1.1473 High Apr 11 
• PRICE: 1.1375 @ 15:56 BST Apr 16
• SUP 1: 1.1144 High Apr 3 and a recent breakout level     
• SUP 2: 1.1001 20-day EMA     
• SUP 3: 1.0788 50-day EMA and a short-term pivot level     
• SUP 4: 1.0733 Low Mar 27 and a key short-term support

The trend outlook in EURUSD remains bullish and the pair is holding on to the bulk of its recent gains. The recent breach of 1.1144, the Apr 3 high and a bull trigger, confirmed a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 1.1555 next, a Fibonacci projection. Initial support lies at the 1.1144 breakout level. Key support is unchanged at the 20-day EMA, at 1.1001.