US 10YR FUTURE TECHS: (U5) Support Has Been Breached
- RES 4: 112-15 61.8% retracement of the Apr 7 - 11 sell-off
- RES 3: 112-12+ High Jul 1 and a bull trigger
- RES 2: 111-13+/111-28 High Jul 10 / High Jul 3
- RES 1: 111-01 20-day EMA
- PRICE: 110-12+@ 11:17 BST Jul 16
- SUP 1: 110-08+ Low Jul 14
- SUP 2: 110-03 76.4% retracement of the May 22 - Jul 1 bull leg
- SUP 3: 109-28 Low Jun 6 and 11
- SUP 4: 109.25 Low May 27
Treasury futures traded lower yesterday. The contract has breached an important support at 110-17, 61.8% of the May 22 - Jul 1 bull leg. Note that price has also traded through a trendline support at 110-23+. The line is drawn from the May 22 low. This strengthens a bearish theme and a continuation would open 110-03, the 76.4% retracement. Resistance to watch is 111-13+, Jul 10 high. Initial resistance is at 111-01, the 20-day EMA.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EQUITIES: Rolling Positions into September dominates the Flows
Equity Flows in Futures is all but spread, done outright and on Legs.
Latest roll goes through the Estoxx:
- VGM5/U5 sold at -20.35, -20.32, -20.31 in 40k.
Looking at the US Emini, circa 75%-80% of the front Month Volume is spread related.
US 10YR FUTURE TECHS: (U5) Resistance Remains Intact For Now
- RES 4: 111-30 76.4% retracement of the May 1 - 22 downleg
- RES 3: 111-21 1.0% 10-dma envelope
- RES 2: 111-14+ High Jun 5 & 61.8% of the May 1 - 22 downleg
- RES 1: 111-13 High Jun 13
- PRICE: 110-18+ @ 11:01 BST Jun 16
- SUP 1: 109-28 Low Jun 6 / 11
- SUP 2: 109-12+ Low May 22 and the bear trigger
- SUP 3: 109-09+ Low Apr 11 and key support
- SUP 4: 108-25+ 0.764 proj of the Apr 7 - 11 - May 1 price swing
Treasury futures remain below key resistance and its recent high at 111-14+, a Fibonacci retracement and the Jun 5 high. Clearance of this hurdle would be bullish and highlight a stronger reversal. This would open 111-30, a Fibonacci retracement. On the downside, support to watch lies at 109-28, the Jun 6 / 11 low. Clearance of this level would be bearish and open the bear trigger at 109-12+, May 22 low.
EU-BOND SYNDICATION: 3.375% Oct-39 tap mandate
"The EU has mandated BofA Securities, Goldman Sachs Bank Europe SE, NatWest, Societe Generale and UBS as Joint Lead Managers for its upcoming Fixed Rate RegS Bearer increase of the EU 3.375% benchmark due 4 October 2039 (EU000A3LZ0X9). No further group. The transaction will be launched tomorrow, subject to market conditions."
From market source
MNI pencils in a transaction size of E5-9bln (point estimate E6bln).
