EM CEEMEA CREDIT: POLAND: 50bps cut expected next Wednesday

DFA has announced earlier that it will be looking to open a new 2.50% Feb-35 Green Bund (ISIN: DE000BU3Z047) at its auction scheduled for next Tuesday, April 8. DFA will be looking to sell E3bln of that Green Bund at the auction.

• In conjunction with that, DFA has announced there will be a simultaneous own-quota E1bln reopening of the twinned 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
• Recall Germany used to always reopen the twinned bond for own quota when selling Green issues. As standard, this is not the case anymore but we don't think this is a significant concern.

• RES 4: 112-23+ 1.618 proj of the Jan 13 - Feb 7 - Feb 12 price swing
• RES 3: 112-13   1.500 proj of the Jan 13 - Feb 7 - Feb 12 price swing
• RES 2: 112-01   High Mar 4 and a bull trigger    
• RES 1: 111-30+ High Apr 1   
• PRICE:‌‌ 111-25+ @ 11:05 BST Apr 2 
• SUP 1: 110-26+ 20-day EMA 
• SUP 2: 110-11/06 50-day EMA / Low Mar 27 
• SUP 3: 110-00   High Feb 7 and a key support 
• SUP 4: 109-21+ Trendline support drawn from the Jan 13 low      

Treasury futures are holding on to their latest gains following the recovery from last week’s low of 110-06+ (Mar 27). The outlook remains bullish and attention is on key resistance at 112-01, the Mar 4 high. Clearance of this level would confirm a resumption of the uptrend and maintain a price sequence of higher highs and higher lows. This would open 112-13, a Fibonacci projection. Initial support to watch is 110-26+, the 20-day EMA.