Market Roundup: Session Highs Still Off Overnight Gap Bid

FI Markets well bid, near recent session highs -- but off early overnight gap bid, yield curves bull steepening: 5s30s +5.22 at 45.92. 30YY currently 2.2227% -0.05111 vs. 2.2099% overnight low.

• Russia invasion of Ukraine main driver for risk-off support in rates. Trading desks reported real- and fast$ acct selling into initial gap bid overnight. Short end funding concerns heat up w/3M FRA/OIS gap wider overnight, tapped 23.80 around Asia/London cross, gradually receding since: currently 18.40 +5.30 vs. late Fri.
  
  • Equities weaker on the cash open, off lows: SPX eminis -51 points (-1.18%) at 4331.0
  • US$ gaining: DXY +.225 to 96.84
    
  • Gold had topped 1930.85 overnight now trading around 1914.0 (+24.70).
    
  • WTI crude well bid but off overnight highs as well: +3.50 at 95.09 after tapping 98.87. Various countries discussing tapping oil reserves, OPEC looking to boost output.
    
• Technicals: Jun 10Y hit high of 127-11+ Thu and briefly traded above this level earlier today.
  • Recent gains still signal scope for an extension of the current corrective cycle and attention is on the 50-day EMA at 127-29+ (cont). Moving average studies still highlight a broader bearish trend condition and the 50-day EMA is seen as an important area of resistance.
  • Flipside: support to watch is at 125-14+, Feb 10 low and bear trigger.