SILVER TECHS: Bull Cycle Extends

France has announced a mandate for a OATei syndicated tap, the Netherlands, Germany and Italy are all still due to hold auctions in the upcoming week while the EU came to the market yesterday. There is also the potential for Austrian, Italian and EFSF syndications in upcoming weeks. We look for estimated gross issuance for the week of E35.7bln, up from E30.2bln last week.

For the full document including more details on issuance this week and next week click here.

• France has announced a mandate to tap the 0.95% Jul-43 OATei (ISIN: FR001400QCA1) via syndication in the “near future”. MNI expects a transaction today with a transaction size of E3-4bln.
• This morning, the Netherlands will hold a DSL auction to issue E1.5-2.0bln of the 2.50% Jul-35 DSL (ISIN: NL0015002F72).
• Also this morning, Germany will sell E4.5bln of the 2.40% Apr-30 Bobl (ISIN: DE000BU25042).
• Tomorrow, Italy will hold a BTP Short Term and BTPei auction. On offer will be E2.5-3.0bln of the on-the-run 2.55% Feb-27 BTP Short Term (ISIN: IT0005633794) alongside E1.0-1.5bln of the 1.50% May-29 BTPei (ISIN: IT0005543803).
• Also tomorrow, Germany will return to the market to hold a 15-year Bund auction. On offer will be E1.5bln of the 2.60% May-41 Bund (ISIN: DE000BU2F009) alongside E500mln of the 2.50% Aug-46 Bund (ISIN: DE0001102341).
• To conclude the week on Friday, Italy will hold a 5/10-year BTP auction and CCTeu auction. Details will be announced later today.

• RES 4: 94.00 Round number resistance    
• RES 3: 93.79 High Mar 4 and a bull trigger         
• RES 2: 93.06 Low Mar 4 and a gap high on the daily chart  
• RES 1: 92.11/93.01 20-day EMA / High Mar 20 and a S/T bull trigger                       
• PRICE: 91.30 @ Close Mar 25
• SUP 1: 91.07 Low Mar 13                                      
• SUP 2: 90.71 Low Mar 6 and a bear trigger  
• SUP 3: 90.49 1.618 proj of the Feb 6 - 20 - Mar 4 price swing  
• SUP 4: 90.19 1.764 proj of the Feb 6 - 20 - Mar 4 price swing

The short-term trend outlook in Gilt futures remains bearish and recent gains appear to have been a correction. Monday’s move lower reinforces a bear theme. Key short-term resistance has been defined at 93.01, the Mar 20 high. A break of this level is required to highlight a bullish condition. For now, attention is on support at 91.07, the Mar 13 low, and the bear trigger at 90.71, the Mar 6 low. A break of 90.71 resumes the downtrend.

The BOJ's demand indexes show costs are being increasingly passed on downstream -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.