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AUSSIE 10-YEAR TECHS

(U2) More Stable But Still Fragile

USDCAD TECHS

Trend Structure Remains Bullish

US TSYS

Cautious Risk Appetite Gains Momentum

AUDUSD TECHS

Key Support Still Exposed

US STOCKS

Late Equity Roundup: 2W Highs

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Core FI Softens Further As Key Milestones Eyed/Breached

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Nothing in the way of fresh fundamental headline flow observed to trigger some weakness in core global fixed income markets. The move seems more linked to flow dynamics, as TYM2 futures flush through earlier session lows, printing as low as 121-05 in the process, with 10-Year Tsy yields above 2.50% for the first time since ’19 (the 76.4% retracement of the move from the ’19 high to the ‘20 floor, located at 2.5643%, provides the next level of meaningful resistance on that front). Note that the fresh round of weakness has also resulted in the U.S. 5-/30-Year Tsy yield curve inverting for the first time since ’06. Meanwhile, 10-Year JGB yields look above the upper end of the BoJ’s permitted 10-Year JGB yield trading band, albeit only incrementally so (a reminder that no offers were tendered at today’s BoJ fixed rate operations, will the Bank come in with a second round of ops given the breach?).

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Nothing in the way of fresh fundamental headline flow observed to trigger some weakness in core global fixed income markets. The move seems more linked to flow dynamics, as TYM2 futures flush through earlier session lows, printing as low as 121-05 in the process, with 10-Year Tsy yields above 2.50% for the first time since ’19 (the 76.4% retracement of the move from the ’19 high to the ‘20 floor, located at 2.5643%, provides the next level of meaningful resistance on that front). Note that the fresh round of weakness has also resulted in the U.S. 5-/30-Year Tsy yield curve inverting for the first time since ’06. Meanwhile, 10-Year JGB yields look above the upper end of the BoJ’s permitted 10-Year JGB yield trading band, albeit only incrementally so (a reminder that no offers were tendered at today’s BoJ fixed rate operations, will the Bank come in with a second round of ops given the breach?).