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JGBS AUCTION

2-Year Auction Results

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JGBS AUCTION

PREVIEW: 2-Year JGB Supply Due

JGBS

Curve Twist Steepens, Futures Narrow

28 June 2018
By Kyle Shortland
     
Click below for today's MNI FI Technical Analysis Report -
http://tinyurl.com/phluope
AUSSIE 3-YR TECHS: (U18) Bulls Targeting 100 & 200-WMAs 
*RES 4: 98.027 - 200-WMA 
*RES 3: 97.955 - High Dec 15 
*RES 2: 97.940 - Bollinger band top 
*RES 1: 97.935 - High May 15
*PRICE: 97.925 @ 2130GMT
*SUP 1: 97.910 - High Mar 29 now support, 55-WMA 
*SUP 2: 97.862 - 200-DMA 
*SUP 3: 97.835 - High June 14 now support 
*SUP 4: 97.795 - High June 13 now support
*COMMENTARY: The bounce from ahead of 97.835 returned pressure to 97.910 with
bulls taking comfort in the close above that now sees focus on 97.955-038 where
the 100 & 200-WMAs are located. Daily studies looking to correct from O/B and
the Bollinger top are key concerns for bulls. Bears now need a close below
97.910 to gain breathing room and hint at a correction back to 97.835-862.
     AUSSIE 10-YR TECHS: (U18) Bulls Need Close Above 97.4400 
*RES 4: 97.4400 - 2018 High Apr 3
*RES 3: 97.4192 - Bollinger band top
*RES 2: 97.4135 - Weekly Bollinger band top
*RES 1: 97.4100 - Monthly High May 30
*PRICE: 97.3850 @ 2130GMT
*SUP 1: 97.3350 - Low June 26
*SUP 2: 97.2894 - 21-DMA
*SUP 3: 97.2550 - Hourly support June 14
*SUP 4: 97.2274 - 55-DMA
*COMMENTARY: Bulls take comfort as pressure remains on the 97.4100-4400
resistance region where the 100-WMA and monthly highs are situated. Bulls look
for a close above 97.4400 to confirm a break of the 100-WMA and initially target
97.5000-5200. Bears look for a close below the 21-DMA to ease bullish pressure
and below the 55-DMA to shift focus back to 97.1360-1725 where the long-term
bull channel base is located.
     US 10-YR FUTURE TECHS: (U18) Focus Shifts To 121-03/12
*RES 4: 121-12  Monthly High June
*RES 3: 121-03  High May 30
*RES 2: 120-24  Hourly resistance May 30a
*RES 1: 120-16  Hourly resistance May 30
*PRICE: 120-12+ @ 2130GMT
*SUP 1: 120-02  Hourly support June 27
*SUP 2: 119-26+ Low June 26
*SUP 3: 119-20+ Low June 22
*SUP 4: 119-13+ Low June 21
*COMMENTARY: The recovery from the dip below 119-14+ saw pressure return to
120-06 and bulls taking comfort in a close above Wednesday. Bulls now focus on
121-03/12 where May highs are located. Daily studies approaching O/B and the
Bollinger top (120-13) capping are concerns for bulls. Initial support is now
noted at 120-02. Bears now need a close below this level to ease bullish
pressure and below 119-26+ to shift focus back to 119-13+.
     US 10-YR YIELD TECHS: Bears Now Targeting 2.717-759
*RES 4: 2.935 - Hourly resistance June 21 
*RES 3: 2.900 - High June 26 
*RES 2: 2.873 - Hourly resistance June 27 
*RES 1: 2.837 - Hourly support June 27 now resistance
*PRICE: 2.827 @ 2130GMT
*SUP 1: 2.821 - Hourly support May 30 
*SUP 2: 2.790 - Hourly support May 30a 
*SUP 3: 2.759 - Low May 29 
*SUP 4: 2.717 - Monthly Low Apr 2
*COMMENTARY: Topside failures around 2.950 saw pressure return to the 2.853
support resulting in a close below Wednesday that now sees focus back on
2.717-759 where Apr & May lows are noted. The Bollinger base (2.826) is the key
concern for bulls and currently supports. Bulls now need a close above 2.873 to
gain breathing room and above 2.950 to pressure the key 3.014-050 region.
     JGB TECHS: (U18) Narrow Sideways Trading Continues
*RES 4: 151.13 - Monthly High May 30
*RES 3: 151.02 - Hourly resistance May 30
*RES 2: 150.94 - Low May 31 now resistance
*RES 1: 150.89 - High June 25
*PRICE: 150.86 @ 2130GMT
*SUP 1: 150.81 - Low June 25 
*SUP 2: 150.71 - Low June 15 
*SUP 3: 150.60 - Low June 14 
*SUP 4: 150.53 - Low Apr 27
*COMMENTARY: Topside follow through was lacking to start the new week with the
contract failing to gain traction above the 21-DMA (150.83). Bulls continue to
look for a close above 150.94 to confirm traction above the 21-DMA and return
focus to the 151.02-19 resistance region. Daily studies approaching O/B are a
concern for bulls. Bears now need a close below 150.81 to gain breathing room
and below 150.71 to reconfirm initial focus on 150.53-60.
--MNI Beijing Bureau; tel: +44 207-862-7435; email: kyle.shortland@mni-news.com
[TOPICS: MTABLE]