BUND TECHS: (U5) Trading Below The Jun 13 High

• RES 4: 119.960 High Apr 7 and the bull trigger          
• RES 3: 119.780 High Apr 22          
• RES 2: 119.600 High May 7
• RES 1: 118.880/118.950 Intraday high / High May 12                                     
• PRICE: 118.810 @ 05:50 BST May 20 
• SUP 1: 118.420 Low May 19        
• SUP 2: 118.060 Low May 14 and 15 and the bear trigger
• SUP 3: 117.680 Low Apr 9 and a key support
• SUP 4: 117.600 Low Mar 28     

The recovery from last week’s low in Bobl futures signals a possible reversal and the end of the corrective cycle between Apr 22 - May 15. A continuation higher would open 118.950 next, the May 12 high. Clearance of this level would strengthen a bullish theme. On the downside, a resumption of weakness would instead expose 117.680, the Apr 9 low and a key support. The bear trigger is 118.060, the May 14 / 15 low.

One of the key IPO's in Asia this year is EV battery marker CATL.  Making its trading debut this week in Hong Kong CATL's shares jumped 14% even after its initial pricing was at the top end of expectations.  

This gave a boost to the Hang Seng which had fallen for three days straight prior to CATL's first day of trading, as it delivered a strong rally.  

• China's Hang Seng is up +1.29% today taking back the losses incurred over recent days.  The CSI 300 was up +0.62%, the Shanghai Comp up +0.38% and the Shenzhen Composite is up +0.86%.
• The KOSPI barely moved today as it lacked direction and rose just +0.03% after yesterday's fall of -0.89%.
• The FTSE Bursa Malaysia KLCI index is lower by -0.42% as the index falls for a fourth straight day despite stronger than expected trade data today.  
• Indonesia's Jakarta Composite has rallied 18 out of the last 20 trading days and is up again today by +0.36%.
• Singapore's FTSE Straits Times is up +0.19% and the PSEi in the Philippines is lower by -1.5%.  
• India's NIFTY 50 continued to fall for a third straight day, down -0.20%.

NZGBs closed showing a modest bull-flattener, with benchmark yields 1-3bps lower. 

• Nevertheless, the NZ-US 10-year yield differential widened 3bps.
• The local market was closed at the time of the RBA decision. As a result, the post-RBA rally in ACGBs—driven by the rate cut and dovish shift—may positively influence NZGBs when trading resumes tomorrow morning.
• Cash US tsys are slightly cheaper in today's Asia-Pac session after yesterday's modest gains.
• (Bloomberg) -- Switzerland’s central bank chief gave a vote of confidence to US government bonds even after the world’s biggest economy was stripped of its last top credit rating by Moody’s.
• “US Treasuries are very liquid,” Swiss National Bank President Martin Schlegel said Monday in Lucerne. “There is currently no alternative to them and it’s not foreseeable that there will be an alternative.”
• Swap rates closed 2-5bps lower, with the 2s10s curve flatter.
• RBNZ dated OIS pricing closed little changed across meetings. 25ps of easing is priced for May, with a cumulative 63bps by November 2025.
• Tomorrow, the local calendar will see Trade Balance data ahead of the Budget on Thursday.
• On Friday, the NZ Treasury plans to sell NZ$250mn of the 3.00% Apr-29 bond, NZ$150mn of the 3.50% Apr-33 bond and NZ$50mn of the 1.75% May-41 bond.