BOBL TECHS: (U5) Bullish Outlook

Germany, France, Spain, Belgium and Finland have sold bills this week. We expect issuance to have been E18.1bln in first round operations, down from E33.8bln last week. 

• RES 4: 107.812 0.618 proj of the Mar 6 - Apr 7 - 9 price swing     
• RES 3: 107.775 High Apr 7 and the bull trigger   
• RES 2: 107.600/735 High Apr 30 / 22 
• RES 1: 107.237/367 50- and 20-day EMA values                  
• PRICE: 107.100 @ 06:03 BST May 14
• SUP 1: 107.070 Low May 13 
• SUP 2: 106.965 Low Apr 9 and a key support     
• SUP 3: 106.928 61.8% retracement of the Mar 6 - Apr 7 bull cycle        
• SUP 4: 106.830 Low Mar 27      

The trend condition in Schatz futures remains bullish, however, a sharp sell-off on Monday strengthens a short-term bearish theme and signals scope for a deeper corrective retracement. The contract has breached 107.090, 50.0% of the rally between Mar 6 - Apr 7. This exposes the next key support at 106.965, the Apr 9 low. Initial firm resistance to watch is 107.367, the 20-day EMA.

• There is still space for yuan to rise further against the dollar in the short term after China and the US reached a temporary truce on tariffs in Geneva, the Securities Times reports, citing analysts.  The yuan is expected to remain volatile and rise in May, fluctuating between 7.0 and 7.3 against the greenback, mostly driven by continuous economic recovery in China and uncertainties of US policies, the report says, citing China Center for Economic Research at Peking University (source Securities Times)
• Goldman Sachs Group Inc. and other major banks boosted their forecasts for China’s 2025 economic growth, citing a better outlook for exports following the tariff truce with the US.  Economists at Goldman Sachs, JPMorgan Chase & Co., ING Groep NV and Bloomberg Economics this week lifted their projections to 4.6% or above from as low as 4% previously. China could avoid a contraction in exports this year after striking a temporary deal with the US to de-escalate their trade conflict, Goldman said in a note Tuesday.  (source BBG)
• China's Hang Seng was strong today rising +1.4% erasing most of yesterday's losses. The CSI 300 was up also but by just +0.27%, Shanghai +0.20% with Shenzhen the outlier falling -0.30%. Taiwan's TAIEX is up for a fourth straight day, up +1.76%
• Yuan Reference Rate at 7.1956 Per USD; Estimate 7.1842
• A touch weaker today with the CGB 10YR 1.67% (+1bp)