UTILITIES: Naturgy (NTGYSM Baa2/BBB/BBB): Taqa Renews Interest

• US Treasuries are seeing a pick up in volumes to the sell side, getting dragged lower by Europe.
• The Dollar is finding a broader bid on the follow, with US Yield elevatged overall, EUR, GBP fell to their respective lows against the Greenback.
• Main focus target in the 10yr Yield is at 4.7351%, the 2024 high, while in G10 FX, the Dollar has pared some of its overnight losse to edge in the green against most G10.

Gilt futures off opening highs, with core global FI markets seeing some light selling pressure in recent trade.

• Contract last +10 at 91.50.
• Bearish technicals intact, initial support at yesterday’s low (91.31), while initial resistance comes in at yesterday’s high (92.13)
• Yields 1-2bp lower across the curve, light bull steepening.
• 10s last 4.67%, focus on 4.70% next, yesterday’s high was 4.687%.
• 30s topped out at 5.25% yesterday, which represents the highest level seen since ’98.
• 10-Year gilt/Bunds ~2bp tighter on the day, last ~216bp.
• There isn’t anything of note on the UK data calendar today, which will leave focus on swelling global supply and U.S. data.
• On the supply front, the DMO will return to market today, looking to sell GBP4.25bln of the 4.375% Mar-30 gilt.
• This morning has already seen the DMO confirm a syndicated re-opening of the 4.375% 2040 gilt, planned for w/c January 20 "subject to demand and market conditions".

• RES 4: $34.903 - High Oct 23 and the bull trigger  
• RES 3: $33.125 - High Nov 1 
• RES 2: $32.338 - High Dec 12 and a key resistance  
• RES 1: $30.489 - 50-day EMA                             
• PRICE: $30.054 @ 08:08 GMT Jan 8  
• SUP 1: $28.748 - Low Dec 19        
• SUP 2: $28.446 - 76.4% retracement of the Aug 8 - Oct 23 bull cycle 
• SUP 3: $27.686 - Low Sep 6 
• SUP 4: $26.451 - Low Aug 8  

A bear cycle in Silver that started Oct 23 remains in play - for now - and recent gains appear corrective. The metal has recently breached support at $29.642, the Nov 28 low. The break lower opens $28.446, a Fibonacci retracement. Note that moving average studies are in a bear-mode position highlighting a dominant downtrend. Key resistance has been defined at $32.338, the Dec 12 high. A break of this level would signal a reversal.