FED: US TSY 7Y NOTE AUCTION: HIGH YLD 4.260%; ALLOTMENT 36.22%

• US TSY 2Y NOTE AUCTION: HIGH YLD 4.071%; ALLOTMENT 42.14%
• US TSY 2Y NOTE AUCTION: DEALERS TAKE 12.34% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: DIRECTS TAKE 30.11% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: INDIRECTS TAKE 57.55% OF COMPETITIVES
• US TSY 2Y AUCTION: BID/CVR 2.64

• RES 4: 1.1857 High Feb 18
• RES 3: 1.1797/1849 High May 06 / Apr 17 and the bull trigger
• RES 2: 1.1742 High May 13  
• RES 1: 1.1679 50-day EMA 
• PRICE: 1.1619 @ 16:17 BST May 26
• SUP 1: 1.1576 Low May 21
• SUP 2: 1.1505 Low Apr 6
• SUP 3: 1.1443 Low Mar 30
• SUP 4: 1.1411 and a key supportLow Mar 13 and 16

EURUSD support remains intact for now - 1.1603 marks the 1.00 projection of the Apr 17 -  30 - May 6 price swing, and 1.1577, is the base of a bear channel drawn from the Apr 17 high. Both have been pierced, a clear break of these support points would strengthen a bear theme and signal scope for a deeper retracement, towards 1.1505 next, the Apr 6 low. Initial key resistance is at 1.1679, the 50-day EMA.

Tuesday's Europe rates/bond options flow included: 

• OEN6 115/116cs 1x1.5, bought the 1 for 29.5 in 5k
• ERM6 97.6875/97.8125/97.9375 call fly, bought for 1 in 5k
• ERM6 97.75/97.81/97.87/97.93c condor, bought for 1.25 in 4k
• ERN6 97.43/97.31/97.25p fly 1x3x2, sold at 2 in 1.5k
• ERU6/Z6 97.56/97.68/97.81c fly strip x1 vs ERU6/Z6 97.81/97.93/98.06c fly strip x2, bought the 1x strip for 3 in 5k (5kx10k)
• SFIM6 96.05/96.25cs, sold at 12.75 in 4k
• SFIM6 96.05/96.15/96.35/96.45c condor, sold at 8.75 in 7k.
• SFIZ6 96.30/96.20/95.50 put ladder, paper receives 6.25 to buy the 1 in 5k