EUROZONE T-BILL ISSUANCE: W/C 19 May

Spain, Austria, the Netherlands, France and Greece are due to sell bills this week. We expect issuance to be 14.8bln in first round operations, down from E15.7bln last week. 

• This morning, Spain will look to sell E2-3bln combined of the 3-month Jul 4, 2025 letras and the 9-month Jan 9, 2026 letras.
• Also this morning, Austria will come to the market with E1bln of the 3-month Jul 24, 2025 ATB and E1bln of the new 6-month Oct 30, 2025 ATB on offer.
• Additionally this morning, the Netherlands will look to issue E1.0-1.5bln of the 2.5-month Jun 27, 2025 DTC and E1.0-2.0bln of the 5.5-month Sep 29, 2025 DTC.
• This afternoon, France will look to sell up to a combined E7.4bln of 13/24/26/52-week BTFs: E2.8-3.2bln of the 13-week Jul 23, 2025 BTF, E0.1-0.5bln of the 24-week Oct 8, 2025 BTF, E1.3-1.7bln of the 26-week Oct 22, 2025 BTF and E1.6-2.0bln of the new 52-week Apr 22, 2026 BTF.
• To conclude issuance for the week tomorrow, Greece will come to the market with E500mln of the new 26-week Apr 25, 2025 GTB on offer.

USD/JPY moves below 140.00 for the first time since September, with the greenback under pressure as U.S. policy uncertainty remains elevated (President Trump’s critique of Fed Chair Powell and ongoing trade war/reallocation headwinds provide the major sources of pressure).

• The pair hits a low of 139.93, with next support located at the 1.382 projection of the Feb 12-Mar 11-Mar 28 price swing (139.79).
• The bearish technical theme has deepened.

• RES 4: 1.3550 High Feb 24 ‘22  
• RES 3: 1.3500 Round number resistance  
• RES 2: 1.3434 High Sep 26 ‘24 and a key resistance
• RES 1: 1.3422 High Apr 22
• PRICE: 1.3410 @ 06:23 BST Apr 22
• SUP 1: 1.3260/3207 Low Apr 21 / High Apr 3 1 
• SUP 2: 1.3075 20-day EMA
• SUP 3: 1.2907 50-day EMA 
• SUP 4: 1.2807 Low Apr 10 

The trend direction in GBPUSD remains up and Monday’s rally reinforces current conditions. The pair has recently breached key resistance at 1.3207, the Apr 3 high and a bull trigger. This highlights a resumption of the medium-term uptrend. Note that moving average studies are in a bull-mode position, signalling a dominant uptrend. Sights are on 1.3434 next, the Sep 26 ‘24 high. Support to watch is 1.3075, the 20-day EMA.