JPY: Spot Rally has Options Hedging for Test - and Break - of YTD Highs

• EUR Benchmark 10Y Fixed (March 12, 2036) at MS+37 (Revised Guidance was MS+40 Area, Guidance was MS+45)
  • Coupon: Annual, act/act ICMA, long first
• Books above EU7.25b (including JLM interest): Leads
• Size: MNI expects E1.5bln
• Settlement: Jan. 12, 2026 (t+5)
• ISIN: SI0002105227
• Bookrunners: Barclays (B&D), DZ Bank, HSBC, JPM, OTPBSI, RBI
• Timing: May price today.

Details as per Bloomberg, with MNI colour.

• In the FI space, recent gains in Bund futures appear to have been a correction and the contract remains in a clear downtrend. A fresh cycle low on Dec 22 confirmed a resumption of the downtrend, signalling scope for a move towards 126.53, the Mar 11 low (cont.). Initial firm resistance is seen at 127.77, the 20-day EMA. A break of this average would signal the start of a stronger correction. The bear trigger is 126.75, the Dec 22 low.
• Recent price action in Gilt futures highlights 90.50, the Dec 16 low, and 91.93, the Nov 27 high, as two important short-term directional triggers. A clear breach of support at 90.50 would signal scope for a deeper retracement towards 89.86, the Nov 19 low and a bear trigger. On the upside, a resumption of gains and a breach of 91.93, would instead open 92.55, the Nov 11 high.

SX5E (18th Dec) 5900^, trades for 717.9 in 10k.