Market Roundup: Risk-On Cues From Nord Stream News

Inside range for rates in late morning trade, Bonds bouncing back near middle of range just minutes after extending session lows. The bounce in 30YY to 3.1924% coincided with headlines re: Nord Stream 1 pipeline to restart flow at reduced levels sometime Thursday. Closed due to maintenance - the reopening underscored the morning risk-on tone, Tsys and EGBs lower, equities extending gains (ESU2 +73.25 at 3907.0).

• Yield curves mixed, 2s10s steeper but off highs at -18.188 (+1.327) vs. -15.344 high. Overall volumes remain light, TYU2 still under 650k. Pick-up in swappable debt issuance from domestic/foreign banks generating rate lock selling in short end to intermediates.
• Technicals for TYU2: Currently 118-06 - well clear of the first support at 117-18. The short-term trend outlook remains bullish and the recent pullback is considered corrective. Key short-term support is at 116-11, Jun 28 low where a break would strengthen a bearish threat and signal scope for a deeper retracement. On the upside, attention is on the short-term bull trigger at 120-16+, the Jul 6 high. A break resumes the uptrend.
• Cross-asset, crude weaker but off lows (WTI -0.72 at 101.88 vs. 99.97 low), Gold firmer +3.63 at 1712.85.