US TSYS: Curve Approaches Flattest Since Dec FOMC Ahead Of Lighter Docket

OEH5 117/116.75ps, sold at 11 in 13k.

• In the equity space, the S&P E-Minis contract has started the week on a bearish note, extending the pullback from Friday’s high. Key short-term support to watch lies at 5961.75, the Jan 16 low. It has been pierced, a clear break would strengthen a bearish threat and signal scope for a deeper retracement. This would open 5943.94, 61.8% retracement of the Jan 13 - 24 bull leg. Key resistance is unchanged at 6178.75, the Dec 6 high.
• A bull cycle in the EUROSTOXX 50 futures contract remains intact and the move lower from Friday’s high, is considered corrective. The move down is allowing an overbought trend condition to unwind. Moving average studies are in a bull-mode set-up that highlights a dominant uptrend. The first important support to watch is 5086.38, the 20-day EMA. A resumption of the uptrend would open 5298.50, the 1.500 projection of the Nov 21 - Dec 9 - 20 price swing.

OI data points to a mix of modest net long setting & short cover as most SOFR futures ticked higher on Friday.

• Net long setting in SFRH8 through SFRU8 stands out a in percentage of OI terms, with little else of note seen elsewhere.