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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

GILT SUMMARY
GILT SUMMARY: June gilt future opened sharply higher but is paring those gains
as I type as markets digest the Fed decision to raise rates, amend the dot plot
curve slightly higher but take on board a dovish tone from Fed Chair Powell in
the press conference. Markets also looking ahead to Bank of England monetary
policy decision at noon today.
- Yield curve is slightly flatter as the long/ultra long-end outperforms with
2-yr yield 1.5bp lower at 0.911% and 10-yr yield 3bp lower at 1.501%
- The take on the Fed is that despite rising rates and the dot plot curve
slightly, Powell's comments appeared cautious and downplayed rise in 2019/2020
part of the dot plot curve.
- Attention is now turning to BoE rate decision, with majority of analysts
expecting the MPC to leave policy on hold, but indicate support for a May rate
hike. There are a handful of analysts though that see 2 dissenters calling for
an immediate rate hike at todays meeting. Risk is seen that there could be more
dissenters following strong labour report yesterday.
- Before BoE we have retail sales data with consensus looking for a rise of 0.4%