BONDS: EGBs-GILTS CASH CLOSE: Core Curves Twist Steepen For The Week

• Treasury futures holding weaker after the $42B 10Y note auction (91282CMM0) tailed: drawing 4.632% high yield vs. 4.622% WI; 2.48x bid-to-cover vs. 2.53x prior.
• Peripheral stats indirect take-up climbs to 71.55% vs. 61.39% prior; direct bidder take-up 13.61% from 22.97% prior; primary dealer take-up 14.84% vs. 15.64% prior.
• The next 10Y auction (re-open) is tentatively scheduled for March 12.

• US TSY 10Y NOTE AUCTION: HIGH YLD 4.632%; ALLOTMENT 32.11%
• US TSY 10Y NOTE AUCTION: DEALERS TAKE 14.84% OF COMPETITIVES
• US TSY 10Y NOTE AUCTION: DIRECTS TAKE 13.61% OF COMPETITIVES
• US TSY 10Y NOTE AUCTION: INDIRECTS TAKE 71.55% OF COMPETITIVES
• US TSY 10Y AUCTION: BID/CVR 2.48

• RES 4: 1.0630 High Dec 6   
• RES 3: 1.0594 Dec 9 ‘24
• RES 2: 1.0533 High Jan 27 and a reversal trigger
• RES 1: 1.0427/42 50-day EMA / High Feb 5 
• PRICE: 1.0375 @ 16:02 GMT Feb 12
• SUP 1: 1.0272/0141 Low Feb 4 / 3 and the bear trigger., 
• SUP 2: 1.0138 1.764 proj of the Sep 25 - Oct 23 - Nov 5 price swing
• SUP 3: 1.0031 2.00 proj of the Sep 25 - Oct 23 - Nov 5 price swing 
• SUP 4: 0.9947 76.4% of the Sep 28 ‘22 - Jul 18 ’23 bull leg 

A short-term bull theme in EURUSD remains intact for now, reinforced by the rally off intraday lows. Attention is on the candle formation on Feb 3 - a hammer - that signals a possible reversal. However, additional reinforcing price evidence is required to signal a turn in the trend. MA studies remain in a bear-mode position, highlighting a dominant downtrend. 1.0427, the 50-day EMA, marks a key resistance. A clear break of it would be a bullish development. The bear trigger is 1.0141, the Feb 3 low.