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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

AUSSIE BONDS
AUSSIE BONDS: JGB futures went in to the lunch break 1 tick higher at 151.01 as
the super-long end experienced modest outperformance in cash dealing.
- JGBs operated in a narrow range, with a lack of tier one news flow & economic
releases apparent.
- The latest round of political scandal surrounding PM Abe's wife was absorbed
by the market, as many headlines surrounding the matter had been run over the
weekend.
- The latest round of BoJ Rinban operations covering the 5-25+ Year buckets saw
a slight pickup in the offer to cover ratio across all 3 maturity groups, so
could exert some pressure on the space in afternoon dealing.
- For futures, recent volatility has resulted in pressure returning to the
151.18-19 region where the Bollinger band top is situated. Bulls continue to
look for a close above 151.19 to initially target 151.51 2017 highs. The
Bollinger band top is the key concern for bulls with potential to limit follow
through. Bears still need a close below 150.89 to ease bullish pressure and
below 150.51 to target 2018 lows.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com