Tsys mildly weaker into midday, well off early session highs that were spurred by Russia foreign affairs minister Lavrov headlines: "If the West delivers long-range weapons to Kyiv, geographical objectives in Ukraine will be advanced even further .. from just the Donetsk and Luhansk People's Republics to a number of other territories". Brief risk-off tone saw 30YY fall 3.1066% low just tapped 3.1856%, while equities trade firmer after mildly lower through the open.
- Markets gradually reversed course through the first half, however, as Russia's Nord Stream 1 pipeline drew attn for the second day. Russia has no pretext for not resuming gas supplies to Germany via the Nordstream 1 pipeline in coming days, EU Commission President Ursula von der Leyen said Wed as maintenance on the NS1 turbine, the original Russian excuse for the shutdown, is now ‘in transit’ back from Siemens Canada where the work was bring done.
- Yield curves inching steeper, 2s10s +2.185 at -20.300, 5s10s +.599 at -12.832. Overall volumes remain light, TYU2 still under 750k.
- Technicals for TYU2 at 117-27 (-4) support at 117-18 remains intact for now. 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.