HUF: EURHUF Extends This Week’s Advance to Over 1% as Tariff Deadlines Loom

• EUR/GBP edges to new daily lows, breaking out of the relatively tight daily range and now tests yesterday's lows at 0.8285, which are holding for now. In similar price action, EUR/USD slipping on a modest pickup in volumes: EUR futures see comfortably the best activity of the day so far on the latest sell-off, with over 2,500 contracts changing hands at 1253GMT/0753ET.
• Importantly, the 15min candle chart shows the pair testing support at the uptrendline drawn off the Feb 3rd AM low of 1.0223. This uptrendline has been tested and has held well on several occasions in the past few weeks - so slippage through here today (last at 1.0474) could well draw focus.

Bonds remain underpinned, no new headlines of note as Bund futures trade to fresh session highs. Next resistance in that contract located at 132.97.

• EGB spreads remain tighter to Bunds, aided by the rally in European equities.
• Gilt futures don’t manage to break session highs as of yet, resistance through today’s peak located at 93.83.

J.P.Morgan “still believe that term premium is likely headed higher over the medium term, given the ongoing growth of the Treasury market, against the backdrop of a sharp structural shift in the demand for Treasuries”.

• They “think weighted belly-cheapening butterflies offer an attractive way to fade the recent decline in term premium”, recommending entering 64:11 weighted 3s/10s/30s belly-cheapening butterflies.