INDIA: PAKISTAN-Ceasefire Holding, FM Spox Warns Agains Resumptio Of Hostilities

May-16 10:03

Reuters reporting comments from the Pakistani Foreign Ministry, spox says that the Directors General of Operations of India and Pakistan have had periodic contact since the 10 May ceasefire was declared, with discussions on a "mechanism for phases of de-escalation" taking place. Spox says "Pakistan remains committed to the ceasefire and taking necessary steps towards de-escalation," and that Pakistan "calls on its international partners to ensure India remains committed to de-escalation". Spox: "Should India resume hostilities, Pakistan will have no choice but to respond."

  • While the ceasefire in place for nearly a week has held so far, tensions along the border remain extremely high and it would likely only take a small incident - either deliberate of via miscalculation - to result in a resumption in open hostilities.
  • Earlier, Reuters reported that "India is considering plans to dramatically increase the water it draws from a major river that feeds Pakistani farms downstream, as part of retaliatory action for a deadly April attack on tourists that New Delhi blames on Islamabad...About 80% of Pakistani farms depend on the Indus system, as do nearly all hydropower projects serving the country of some 250 million." Given this major Pakistani reliance on water from the Indus system, a long-term reduction in flows could inflame tensions over the coming years. 

Historical bullets

OUTLOOK: Price Signal Summary - Monitoring Resistance In S&P E-Minis

Apr-16 10:01
  • In the equity space, a reversal in S&P E-Minis last week highlights the start of a corrective cycle. The trend condition has been oversold following recent weakness and the move higher is allowing this set-up to unwind. Initial resistance to watch is 5498.03, the 20-day EMA. Resistance at the 50-day EMA is at 5701.85. On the downside, key support and the bear trigger has been defined at 4832.00, the Apr 7 low. A break of this level would resume the M/T downtrend. Initial support to watch is 5098.16, the 61.8% retracement of the Apr 7 - 10 bounce.
  • EUROSTOXX 50 futures continue to trade above their recent lows. The latest bounce highlights a corrective cycle and if this is correct, marks an unwinding of the recent oversold trend condition. Resistance levels to watch are 4998.90, the 20-day EMA, and 5131.98, the 50-day EMA. Key support and the bear trigger has been defined at 4444.00, the Apr 7 low. A break of this level would confirm a resumption of the downtrend. Initial support is seen at 4664.00, the Apr 10 low.

PORTUGAL T-BILL AUCTION RESULT: 11-month BT Results

Apr-16 09:57
Type11-month BT
MaturityMar 20, 2026
AmountE1.25bln
TargetE1.00-1.25bln
PreviousE1.223bln
Avg yield1.974%
Previous2.227%
Bid-to-cover1.9x
Previous2.48x
Previous dateMar 19, 2025

STIR: Cover Dominated In SOFR Futures On Tuesday

Apr-16 09:51

SOFR futures were subjected to more pronounced OI movement than their Tsy peers on Tuesday, with net long cover seemingly dominating in the whites, before net short cover came to the fore further out the strip. 

 

15-Apr-25

14-Apr-25

Daily OI Change

 

Daily OI Change In Packs

SFRH5

1,120,538

1,118,447

+2,091

Whites

-61,663

SFRM5

1,225,842

1,242,301

-16,459

Reds

-79,240

SFRU5

972,961

997,273

-24,312

Greens

-20,827

SFRZ5

1,065,880

1,088,863

-22,983

Blues

-8,594

SFRH6

659,193

672,680

-13,487

 

 

SFRM6

703,130

724,145

-21,015

 

 

SFRU6

662,402

679,706

-17,304

 

 

SFRZ6

878,840

906,274

-27,434

 

 

SFRH7

596,613

605,552

-8,939

 

 

SFRM7

553,912

563,948

-10,036

 

 

SFRU7

364,189

365,486

-1,297

 

 

SFRZ7

404,394

404,949

-555

 

 

SFRH8

254,197

257,684

-3,487

 

 

SFRM8

180,371

183,053

-2,682

 

 

SFRU8

135,530

137,181

-1,651

 

 

SFRZ8

148,360

149,134

-774