UK T-BILL AUCTION RESULTS: 1/3/6-month UKTBs

• In FX, the trend condition in EURUSD remains bearish and recent gains appear corrective. Note that moving average studies are in a bear-mode position, highlighting a dominant downtrend. The 20-day EMA, at 1.0405, has been pierced. The next resistance to watch is 1.0458, the Dec 30 high. The bear trigger is 1.0226, the Jan 2 low.
• The trend condition in GBPUSD remains bearish. The sharp sell-off on Jan 2 confirmed a resumption of the medium-term downtrend. Note too that MA studies are in a bear-mode position, highlighting a downtrend. The latest recovery is for now, considered corrective. Initial firm resistance is at 1.2550, the 20-day EMA (pierced). The bear trigger is 1.2353, the Jan 2 low.
• USDJPY bulls remain in the driver’s seat and the pair is trading at its recent highs. Tuesday’s fresh cycle high reinforces current bullish conditions. The recent breach of 156.75, the Nov 15 high, confirmed a resumption of the uptrend and this has paved the way for a move towards 159.45, the Jul 12 high. Initial firm support is 156.24, the 20-day EMA.

Short setting dominated in SOFR futures on Tuesday, with only limited pockets of net long cover seen.

• Firmer-than-expected ISM services prices paid & JOLTS jobs data drove yesterday’s hawkish adjustment.

• "The Republic of Portugal, rated Moody's A3 (Stable), Standard and Poor's A- (Positive), Fitch Ratings A- (Positive), DBRS A (Positive), Scope A (Stable) has mandated BBVA, BNP PARIBAS, CaixaBI, Credit Agricole CIB, J.P. Morgan and Morgan Stanley as Joint Lead Managers for a forthcoming 10-year Benchmark Portuguese Government Bond (PGB) maturing on 15 June 2035."
• "The syndicated transaction is expected to be launched and priced in the near future, subject to market conditions. The issue will be RegS Category 1, 144A eligible and contain CAC." 
• Details per market source
• We expected a Portugal syndication this week and saw scope for a 10-year launch. We pencil in a E3-4bln size for that syndication.