US: Trump's Approval Rating Steady Ahead Of OBBB Survey Data

No reaction in Treasuries, trading near recent session highs after Pres Trump posted on his social media platform that the debt limit "should be ended to prevent economic catastrophe". Trump has been a proponent of raising or eliminating the debt limit since his first term.
 

European curves flattened Wednesday, with Gilts outperforming Bunds.

• Bunds softened early, with Eurozone services PMI revised up, the German cabinet approving corporate tax cuts, and equities gaining ground. EGB weakness spilled over into Gilts.
• Afternoon moves in Gilts in particular tracked US Treasuries, which were buoyed by soft ADP private payroll and ISM Services data.
• For the session, the German curve twist flattened, with the UK's bull flattening.
• Periphery/semi-core EGB spreads were little changed; BTPs modestly outperformed.
• The ECB meeting, with an expected 25bp cut, is Thursday's focus -  MNI's preview is here.
• We also get BoE DMP survey, and appearances by Greene and Breeden.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is up 1.2bps at 1.798%, 5-Yr is up 1.6bps at 2.098%, 10-Yr is up 0.3bps at 2.528%, and 30-Yr is down 1.8bps at 2.999%.
• UK: The 2-Yr yield is down 2.3bps at 4.005%, 5-Yr is down 2.8bps at 4.115%, 10-Yr is down 3.2bps at 4.606%, and 30-Yr is down 4.5bps at 5.322%.
• Italian BTP spread down 0.6bps at 96.4bps / French OAT up 0.3bps at 67.3bps  

• RES 4: 1.3913 High Sep 14 2021
• RES 3: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
• RES 2: 1.3605 1.382 proj of the Feb 28 - Apr 3 - 7 price swing
• RES 1: 1.3593 High May 26 and a bull trigger  
• PRICE: 1.3567 @ 16:24 BST Jun 4
• SUP 1: 1.3418 20-day EMA
• SUP 2: 1.3335/3255 Low May 20 / 50-day EMA
• SUP 3: 1.3140 Low May 12 and key support
• SUP 4: 1.3041 Low Apr 14

The trend structure in GBPUSD remains bullish and the pair is trading closer to its recent highs. Initial support to watch lies at 1.3418, the 20-day EMA. A clear break of this EMA would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3255. For bulls, sights are on resistance at 1.3593, the May 26 high and bull trigger. Clearance of this level would resume the uptrend.