US 10YR FUTURE TECHS: (U6) Remains Capped by 50-day EMA

Punchbowl News reports that the US Congress "is the closest it’s been in years to enacting stiff new penalties on Russia over the war in Ukraine, more than a year after 90 senators co-sponsored legislation to up the ante against Moscow.

• “President Donald Trump has finally backed the plan, which was unveiled Tuesday. Senators from both parties are vowing to move swiftly in honor of the late Sen. Lindsey Graham (R-S.C.), who led the introduction of the initial package. The reworked legislation authorizes up to a 100% tariff on the top five countries purchasing Russian oil. It also sanctions financial institutions in Russia as well as sanctions-evading ships.”
• However, despite the momentum, there are concerns that House Democratic opposition to the tariff mechanism that underpins the legislation could derail the effort. 
• The ranking Democrat on the House Foreign Affairs Committee, Rep Gregory Meeks (D-NY) wrote in a statement yesterday, “This is not so much a sanctions bill as it is a massive backdoor authority for President Trump to impose more tariffs, including on our European allies… The sanctions the bill does contain are entirely at Donald Trump’s discretion, and he has made clear repeatedly that he would rather waive sanctions on Russia than impose new ones.”
• In defence of that the bill, Senator Jeanne Shaheen (D-NH), the top Democrat on the Senate Foreign Relations Committee, told Punchbowl that the reworked legislation, “dramatically narrows the tariff provisions and focuses on those countries that are really funding Russia’s war.”

Incoming PM Andy Burnham is circumspect on the prospect of the imposition of some form of wealth tax on coming to office. Speaking on Gary Lineker's podcast, Burnham says, "I’m not going [to] rule things out right now. I do believe we need a greater sense of fairness[...]. But at the same time, I don’t want to be perceived as somebody who’s coming in with grudges [...] We are going to have to work quite hard to make sure we can pay our way. And at some point that might be having to ask for a little more. But those decisions are not for now. They’re for another day.”

• The increasing expectation that Home Secretary Shabana Mahmood will be made Chancellor of the Exchequer (UK FISCAL: FT follows I's story that Mahmood to be next Chancellor) does little to offer clarity on the likelihood of 'wealth taxes', whether in the form of a land tax or equalisation of capital gains tax with income tax, given her previous ministerial focus on domestic policy.
• Regarding the future of UK-US relations under President Donald Trump, Burnham was relatively vague, saying: “I’ll just meet him where he’s at....I like to think I’ve got some personality myself ...I’ll deal with him very upfront in the same way I think he likes people to deal with him. [...] it’s about being yourself, isn’t it? It’s about respecting the office, the relationship, the UK-US relationship. But...where you disagree, do it, but do it in a way that is kind of meeting him where he’s at.”

Gilt futures have inched another ~10 ticks higher following that FT story on Mahmood, which broadly confirmed reports from the I earlier. Yesterday’s highs have now been cleared, with futures +20 ticks on the session at 87.54. Initial firm resistance remains 88.07, the July 10 high. Rallies short of this level are considered corrective from a technical perspective.