EM ASIA CREDIT: TSMC: 2Q results ahead of consensus

The ESM, Portugal and the EU are still due to sell bills this week, while Germany, the Netherlands and France have already come to the market. We expect issuance to be E18.1bln in first round operations, down from E20.9bln last week.

• Today, the ESM will look to sell up to E1.1bln of the new 6-month Dec 18, 2025 bills.
• Tomorrow morning, Portugal will look to issue E0.75-1.00bln of the 11-month May 22, 2026 BT.
• Finally tomorrow, the EU will look to sell up to E1.0bln of the 3-month Sep 5, 2026 EU-bill, up to E1.0bln of the 6-month Dec 5, 2025 EU-bill and up to E1.0bln of the 12-month Jun 5, 2026 EU-bill.

• RES 4: 107.690 High Apr 30 
• RES 3: 107.610 High May 23 and a key near-term resistance
• RES 2: 107.430/475 High Jun 13 / High May 27
• RES 1: 107.327 20-day EMA 
• PRICE: 107.255 @ 06:09 BST Jun 17
• SUP 1: 107.195/185 Low Jun 6 / 16    
• SUP 2: 107.125 Low May 12 and a key support
• SUP 3: 107.000 Round number support 
• SUP 4: 106.890 2.000 proj of the May 23 - 29 - 30 price swing

Schatz futures faced strong resistance Friday, resulting in a pullback from the session high. Support to watch lies at 107.195, the Jun 6 low. It has been pierced, a clear break of this level would reinstate a bearish threat and signal scope for an extension towards 107.125, the May 12 low. On the upside, a breach of 107.470, the May 30 high, is required to strengthen a bullish condition. First key resistance is 107.430, the Jun 13 high.

• China's economy continued to expand steadily in May, supported by ongoing policy measures that helped sustain recovery amid global uncertainties, official data showed on Monday.
• Key economic indicators -- industrial production, retail sales, investment and services -- extended gains last month, while employment continued its stable trend, according to the National Bureau of Statistics (NBS).  (source XINHUA)
• China's cross-border e-commerce sector achieved a historic milestone in 2024, with annual exports surpassing 2 trillion yuan (about 278.59 billion U.S. dollars) for the first time, according to data from the General Administration of Customs (GAC).  The sector's exports grew 16.9 percent year on year to reach 2.15 trillion yuan in 2024, while total cross-border trade volume hit 2.71 trillion yuan.  (source XINHUA)
• The Hang Seng drifted marginally lower by -0.13% and remains down by -0.55% over the last five trading days. The CSI 300 followed, down -0.15%, the Shanghai Composite down -0.19% and the Shenzhen Composite is down a mere --0.04% and is barely positive over the last five trading days.
• Yuan Reference Rate at 7.1746 Per USD; Estimate 7.1819
• CGBs are little changed today with the 10Yr at 1.69%