BONDS: EGBs-GILTS CASH CLOSE: Bunds Outperform As Tariff Threats Linger

• Tsys futures paring losses (TYH5 currently 108-30.5 last, -6.5) after the $44B 7Y note auction (91282CMC2) stops 0.8bp through with 4.457% high yield vs. WI of 4.465%; bid-to-cover 2.64x vs. 2.76x prior.
• Peripheral stats: Indirect take-up falls back to 67.08% vs. 87.88% in December; Direct take-up rebounds off lat month's record low of 2.84% to 23.06%; Dealers take 9.86% vs. 9.27% prior.
• The next 7Y Treasury auction is tentatively scheduled for February 26

• US TSY 7Y NOTE AUCTION: HIGH YLD 4.457%; ALLOTMENT 49.84%
• US TSY 7Y NOTE AUCTION: DEALERS TAKE 9.86% OF COMPETITIVES
• US TSY 7Y NOTE AUCTION: DIRECTS TAKE 23.06% OF COMPETITIVES
• US TSY 7Y NOTE AUCTION: INDIRECTS TAKE 67.08% OF COMPETITIVES
• US TSY 7Y AUCTION: BID/CVR 2.64

• RES 4: 1.0696 50.0% retracement of the Sep 25 - Jan 13 bear leg 
• RES 3: 1.0630 High Dec 06
• RES 2: 1.0574 38.2% retracement of the Sep 25 - Jan 13 bear leg
• RES 1: 1.0533 High Jan 27
• PRICE: 1.0430 @ 16:18 GMT Jan 28
• SUP 1: 1.0388 20-day EMA  
• SUP 2: 1.0260 Low Jan 15 
• SUP 3: 1.0178 Low Jan 13 and the bear trigger 
• SUP 4: 1.0138 1.764 proj of the Sep 25 - Oct 23 - Nov 5 price swing  

EURUSD remains in a short-term bull cycle - a correction - and continues to trade closer to its recent highs. The pair has pierced the 50-day EMA, at 1.0459. A clear break of it would strengthen short-term bullish conditions and signal scope for a continuation higher near-term. Sights are on 1.0574, a Fibonacci retracement point. Initial support to watch is 1.0388, the 20-day EMA. A move through the EMA would signal a possible reversal.