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JGB TECHS

(Z1) Bearish Trend Condition

AUSSIE 10-YEAR TECHS

(Z1) Bearish Price Sequence

AUSSIE 3-YEAR TECHS

(Z1) Off Recent Highs

US 10YR FUTURE TECHS

(Z1)‌‌ Support Appears Exposed

Awaiting US employment data

BOND SUMMARY

Market awaits US employment data.

  • EGBs have traded heavy this morning with curves bear steepening.
  • Equity bid and comments from ECB Kazak "decision to slow Bond buying possible in June", have kept the lid on Govies.
  • BTP, fell with Bunds, and 10yr yield now eye the May high at 0.944%, also highest yield level since 21/09.
  • BTP support noted at 146.70 Low May 3, has so far held, with the contract printing 146.79 low.
  • Peripherals are trending a touch wider, Italy at 1.3bp.
  • Gilts have ticked lower inline with EGBs, and also following the UK local election headline, that UK Conservatives won Hartlepool, in what was a massive blow for the Labour party.
  • US treasuries are trading within overnight ranges and sits in red territory at the time of typing.
  • US curve also leans bear steeper, on limited volume and market flow ahead of the US NFP.
  • Looking ahead sees US and Canadian employment data.
  • US President Biden delivers remarks on the April jobs report
  • More speakers are scheduled, including ECB Lagarde, BoE Broadbent and Haldane, Fed Barkin.
  • After markets, rating from Fitch on Austria and France, and Moody on Italy
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com