US 10YR FUTURE TECHS: (Z5) Bulls Remain In The Driver’s Seat
- RES 4: 114-10 High Apr 7 (cont.)
- RES 3: 114-05 1.0% 10-dma envelope
- RES 2: 114-00 Round number resistance
- RES 1: 113-29 High Sep 5
- PRICE: 113-05 @ 16:48 BST Sep 12
- SUP 1: 113-04+/112-21+ Low Sep 12 / 20-day EMA
- SUP 2: 112-00+ 50-day EMA
- SUP 3: 111-13+ Low Aug 18 and a key support
- SUP 4: 110-25 Low Aug 1
Treasury futures rallied to a fresh cycle high Thursday, allowing the contract to build on the bulk of its latest gains. Note that the recent impulsive rally highlights an acceleration of the uptrend. Also, moving average studies are in a bull-mode position, highlighting a dominant uptrend. This suggests scope for an extension through 114-00 next and a test of 114-10, the Apr 7 high (cont). Initial firm support to watch is 112-21+, the 20-day EMA.
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JGBS: Rakuten Bank Stepping Back From JGB Buying
From a little earlier this afternoon "Rakuten Bank to Refrain From JGB Buying as More Rate Hikes Seen" Bloomberg
From the story: "Rakuten Bank Ltd. will likely hold back from actively buying Japanese government bonds until the central bank raises interest rates again, in the latest sign that an uncertain policy outlook is weighing on investor sentiment."
"The lender, a unit of Japan’s e-commerce giant Rakuten Group Inc., has seen its total deposits almost triple from five years ago to ¥11.7 trillion ($79 billion) at the end of June, as its online banking services attract more customers. While the deposits are dwarfed by those of Japan’s biggest lenders, Rakuten Bank’s fast-growing cash pool is pushing it to look for investments".
Comes against a backdrop of ongoing concerns around JGB liquidity and structural demand. Yesterday, the 10-year JGB went untraded for the first time in two years.
FED: US TSY 17W BILL AUCTION: HIGH 4.050%(ALLOT 41.13%)
- US TSY 17W BILL AUCTION: HIGH 4.050%(ALLOT 41.13%)
- US TSY 17W BILL AUCTION: DEALERS TAKE 28.74% OF COMPETITIVES
- US TSY 17W BILL AUCTION: DIRECTS TAKE 5.29% OF COMPETITIVES
- US TSY 17W BILL AUCTION: INDIRECTS TAKE 65.98% OF COMPETITIVES
- US TSY 17W BILL AUCTION: BID/CVR 3.50
OPTIONS: Larger FX Option Pipeline
- EUR/USD: Aug15 $1.1590-10(E1.3bln); Aug18 $1.1560(E1.1bln); Aug19 $1.1620-25(E1.7bln)
- USD/CAD: Aug15 C$1.3910($995mln)
- USD/CNY: Aug15 Cny7.5000($1.7bln)
