OUTLOOK: Price Signal Summary - GBPUSD Support Remains Intact For Now

Hard act to follow after Monday's record $59.55B corporate debt issuance - would have been a record even without $12B Saudi Arabia & $8.5B Mexico multi-tranche issuance. European Investment Bank (EIB) leads so far today with $6B 5Y SOFR:

• Date $MM Issuer (Priced *, Launch #)
  • 01/07 $6B European Investment Bank (EIB) 5Y SOFR+42
  • 01/07 $500M DBJ WNG 10Y SOFR+73
  • 01/07 $Benchmark World Bank 7Y +54
  • 01/07 $Benchmark ADB 3Y SOFR+31
  • 01/07 $Benchmark CIBC 5Y SOFR+75a
  • 01/07 $Benchmark Kommunalbanken 5Y
  • 01/07 $Benchmark Ontario 5Y SOFR+60a
  • 01/07 $Benchmark Santander 5Y +135a, 10Y +160a
  • 01/07 $Benchmark Kexim 3Y +55a, 3Y SOFR, 5Y +75a, 10Y +90a
  • 01/07 $Benchmark SMFG 5.25Y +100, 5.25Y SOFR, 7Y +110a, 10Y +120a

• In the FI space, the trend cycle in Bund futures remains bearish and last Friday’s sell-off plus Monday’s extension, reinforces this theme. Sights are on key support at 132.00, the Nov 6 low. Clearance of this level would strengthen a bearish theme. Initial resistance is seen at 133.48, last Friday’s high. Key short-term resistance is at 134.10, the 20-day EMA.
• The trend condition in Gilt futures is unchanged, it remains bearish and recent short-term gains appear to have been corrective. The recent breach of 91.87, the Dec 19 low, confirmed a resumption of the downtrend. Sights are on 91.58 next, a 4.382 projection of the Dec 3 - 4 - 5 minor price swing. Initial resistance is at 92.08, the Jan 2 high. Resistance at the 20-day EMA, is at 93.16, and the average is seen as an important hurdle for bulls.

ERG5 97.625/97.50ps 1x2, sold at 2.75 in 2.5k.