EUROZONE T-BILL ISSUANCE: W/C 5 January

• RES 4: 114-00   Round number resistance 
• RES 3: 113-29+ High Oct 17 and a key resistance 
• RES 2: 113-23   High Oct 23
• RES 1: 113-11/22+ High Dec 1 / High Nov 25
• PRICE:‌‌ 113-00 @ 16:52 GMT Dec 3
• SUP 1: 112-22   Low Dec 02
• SUP 2: 112-10+ Low Nov 20
• SUP 3: 112-07   Low Nov 5 and a key support
• SUP 4: 112-02+ Low Sep 25  

Treasuries maintain a softer tone following the sharp sell-off Monday. Price has pierced support around the 50-day EMA, at 112-27. A clear breach of this average would undermine a recent bull theme and signal scope for a deeper retracement. This would open 112-07, the Nov 5 high and a bear trigger. A reversal higher is required to once again refocus attention on the key resistance and bull trigger at 113-29+, the Oct 17 high.   

• Stocks trade steady to mixed Wednesday, recovering from early session lows after Microsoft denied a write-up from "The Information" they had lowered "AI software sales quotas". Pretty specific, nevertheless, while market concerns over stretched AI-tied valuations persist.
• The piece writes: "Executives at Microsoft and other enterprise software firms heralded 2025 as the year artificial intelligence would be capable of automating tasks that involve multiple steps, such as generating dashboards based on company sales data. But as the year comes to a close, Microsoft has lowered expectations for how quickly it can get customers to spend money on these newer products, known as agents. Multiple Microsoft divisions, for instance, have lowered how much salespeople are supposed to grow".
• Currently, the DJIA trades up 275.72 points (0.58%) at 47747.84, S&P E-Mini Futures up 17 points (0.25%) at 6857.25, Nasdaq up 28.5 points (0.1%) at 23441.61.
• Information Technology and Communication Services sector shares led declines in the first half:
  • While chip makers traded strong ahead midday (Microchip Technology +7.48%, ON Semiconductor +7.15% and NXP Semiconductors +4.30%), there was a greater breadth of software laggers: Sandisk Corp -6.31%, Seagate -4.04%, Western Digital -2.38%, Micron Technology -2.30% and Crowdstrike Holdings -2.13%.
  • Meanwhile, Netflix -5.86%, Paramount Skydance -5.44%, Take-Two Interactive Software -1.37% and Warner Bros Discovery -1.06% weighed on the Communication Services sector.
• On the positive side, Energy and Financial Services sector shares led advances in the first half:
  • APA Corp +3.69%, Expand Energy +2.57%, EQT Corp +2.25%, Targa Resources Corp +2.24% and ConocoPhillips +2.09%.
  • Fiserv Inc +5.46%, Coinbase Global +4.12%, Block Inc +3.71% and Robinhood Markets +3.50%.

• US TSY 17W BILL AUCTION: HIGH 3.620%(ALLOT 53.30%)
• US TSY 17W BILL AUCTION: DEALERS TAKE 37.13% OF COMPETITIVES
• US TSY 17W BILL AUCTION: DIRECTS TAKE 5.59% OF COMPETITIVES
• US TSY 17W BILL AUCTION: INDIRECTS TAKE 57.28% OF COMPETITIVES
• US TSY 17W BILL AUCTION: BID/CVR 3.17