US 10YR FUTURE TECHS: (M5) Bull Cycle Remains In Play
- RES 4: 111-22+ High Dec 3 ‘24 and a key resistance
- RES 3: 111-00 Round number resistance
- RES 2: 110-31 1.00 proj of the Jan 13 - Feb 7 - Feb 12 price swing
- RES 1: 110-20+/21 High Feb 26 / 25
- PRICE: 110-17 @ 16:50 GMT Feb 26
- SUP 1: 110-00 High Feb 7 and a recent breakout point
- SUP 2: 109-11 50-day EMA and a key near-term support
- SUP 3: 108-21 Low Feb 19
- SUP 4: 108-03+ Low Dec 12 and a bear trigger
Treasury futures have traded higher this week. The contract has pierced resistance at 110-20, the 76.4% retracement of the Dec 3 - Jan 13 bear leg.
This broadens the bullish recovery and signals scope for a climb towards the 111-00 handle, ahead of 111-22+, the Dec 3 high and a key resistance. Initial firm support to monitor is 109-11, the 50-day EMA. A move below this average is required to highlight a potential reversal.
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ITALY AUCTION PREVIEW: On offer this week
MEF has announced it will be looking forward to sell the following at its auction this Thursday, January 30:
- E2.5-2.75bln of the 3.00% Oct-29 BTP (ISIN: IT0005611055)
- E1.5-2.0bln of the 3.85% Feb-35 BTP (ISIN: IT0005607970)
- E1.0-1.5bln of the 3.35% Mar-35 BTP (ISIN: IT0005358806)
- E2.25-2.75bln of the 1.10% Apr-33 CCTeu (ISIN: IT0005620460)
US TSYS/SUPPLY: Review 2Y Auction
Tsy futures remain bid (TYH5 +18 at 109-01) after the latest $69B 2Y note auction (91282CMH1) comes out nearly in line: 4.2110% high yield vs. 4.210% WI; 2.66x bid-to-cover vs. 2.73x prior.
Indirect take-up retreated to 65.02% from 82.09% prior, directs rebounded to 21.27% vs. 6.65% prior, primary dealer take-up 13.71% vs. 11.26% prior.
The next 2Y auction is tentatively scheduled for February 24.
FED: US TSY 26W BILL AUCTION: HIGH 4.140%(ALLOT 66.53%)
- US TSY 26W BILL AUCTION: HIGH 4.140%(ALLOT 66.53%)
- US TSY 26W BILL AUCTION: DEALERS TAKE 31.29% OF COMPETITIVES
- US TSY 26W BILL AUCTION: DIRECTS TAKE 8.08% OF COMPETITIVES
- US TSY 26W BILL AUCTION: INDIRECTS TAKE 60.63% OF COMPETITIVES
- US TSY 26W BILL AUCTION: BID/CVR 2.92
