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BUND TECHS

(Z1) Resumes Its Downtrend

INDIA

Borrowing Plan Unchanged

JGBS

Soft Cover At 40-Year Auction

AUSSIE BONDS

Continued Tick Lower

JGBS AUCTION

40-Year JGB Auction Results

EQUITIES

Hong Kong Bucks Broadly Negative Trend

By Kyle Shortland
     BEIJING (MNI) - 
Please click on this link to access MNI's daily European FI Technical Analysis
Pdf - http://tinyurl.com/nhjogts
BUND TECHS: (U18) Bulls Need Close Above 162.15
*RES 4: 164.19 2018 High May 29
*RES 3: 163.03 High May 30
*RES 2: 162.15 High May 31
*RES 1: 161.75 High June 1
*PREVIOUS CLOSE: 161.18
*SUP 1: 160.68 Lows June 4 & 5
*SUP 2: 160.16 High May 24 now support
*SUP 3: 159.76 21-DMA
*SUP 4: 159.15 Low May 24
*COMMENTARY: U18 has given back some of last week's gains and remains offered as
O/B daily studies correct lower adding weight to the case for a test of
159.04-159.76 where 21 & 55-DMAs are located. Layers of resistance continue to
accumulate. Bulls now need a close above 162.15 ease bearish pressure and above
163.03 to return immediate focus to tests of 2018 highs. Overall bears need a
close below 157.14 to confirm focus to tests of 2018 lows.
     BOBL TECHS: (U18) Bulls Need Close Above 123.12
*RES 4: 132.660 High May 30 
*RES 3: 132.370 Hourly resistance May 30 
*RES 2: 132.120 High May 31 
*RES 1: 131.860 High June 5
*PREVIOUS CLOSE: 131.700
*SUP 1: 131.430 Low June 4
*SUP 2: 131.230 Low May 28
*SUP 3: 131.043 21-DMA
*SUP 4: 130.810 Low May 24
*COMMENTARY: The contract has given back gains as correcting O/B studies add
weight to the case for a deeper sell-off. Immediate bearish focus is now on the
131.430 support with a close below needed to pressure 21 & 55-DMAs. Resistance
layers are following U18 lower adding weight to the bearish case. Bulls still
need a close above 132.120 to gain breathing
room and return focus to 132.660-970 where 2018 highs are noted.
     SCHATZ TECHS: (U18) 112.155 Resistance Key Today
*RES 4: 112.350 Hourly resistance May 29 
*RES 3: 112.270 High May 30 
*RES 2: 112.155 Hourly resistance May 30 
*RES 1: 112.120 High May 31
*PREVIOUS CLOSE: 112.045
*SUP 1: 111.960 Low June 1 
*SUP 2: 111.925 High May 24 now support 
*SUP 3: 111.893 21-DMA 
*SUP 4: 111.815 Alternating daily support/resistance
*COMMENTARY: A lack of topside follow through and a move looking a little
overdone combined to produce a correction lower Wed with losses continuing
Monday. Correcting O/B daily studies are adding weight to the case for a deeper
sell-off and an increased risk of a test of 111.787-815 where 55 & 100-DMAs are
found. The 112.155 resistance is now key. Bulls need a close above this level to
gain breathing room and above 112.270 to shift focus back to 112.425.
     GILT TECHS: (U18) Bulls Need Close Above 123.17
*RES 4: 125.42 High Dec 27 
*RES 3: 124.67 High May 29 
*RES 2: 123.93 Hourly resistance May 29 
*RES 1: 123.17 High June 1
*PREVIOUS CLOSE: 122.83
*SUP 1: 122.43 Low June 1 
*SUP 2: 121.86 High May 4 now support 
*SUP 3: 121.63 21-DMA 
*SUP 4: 121.31 55-DMA
*COMMENTARY: Aggressive gains lacked follow through last week which is less than
ideal for bulls given very O/B daily studies. Daily studies correcting from O/B
remain a key concern for bulls. Bulls continue to look for a close above 123.17
to gain breathing room and above 123.93 to return immediate focus to 2018 highs.
While 123.17 caps bears focus on 120.96-121.86 where key DMAs are noted with a
close below 122.43 to add weight to their case.
     SHORT-STERLING TECHS: (U18) 99.260 Resistance Key Today
*RES 4: 99.424 Weekly Bear channel top off Sept high
*RES 3: 99.350 100-WMA
*RES 2: 99.300 High May 25-30
*RES 1: 99.260 Lows May 25 & 30 now resistance
*PREVIOUS CLOSE: 99.230
*SUP 1: 99.210 Lows May 16-18
*SUP 2: 99.194 200-DMA
*SUP 3: 99.140 Lows May 30 - Apr 3
*SUP 4: 99.131 100-DMA, 21-WMA
*COMMENTARY: The lack of topside follow through on last week's highs has
resulted in the contract correcting lower. The marginal close below the 21-DMA
(92.232) adds weight to the bearish case for a move initially targeting
99.125-140 where 55 & 100-DMAs and the 21-WMA are noted. Bears now look for a
close below the 200-DMA. Initial resistance is noted at 99.260 with bulls
needing a close above to gain breathing room.
     EURIBOR TECHS: (Z18) Above 55-DMA To Pressure 2018 High
*RES 4: 100.310 - 2018 High Repeatedly May 
*RES 3: 100.305 - Repeated daily lows Apr/May 
*RES 2: 100.295 - Alternating daily support/resistance 
*RES 1: 100.292 - 55-DMA
*PREVIOUS CLOSE: 100.275
*SUP 1: 100.275 - Low June 4 & 5
*SUP 2: 100.265 - High May 31 now support
*SUP 3: 100.255 - Low June 1
*SUP 4: 100.235 - Low May 31
*COMMENTARY: Bulls take comfort as lost ground is recovered and pressure returns
to the 55-DMA. Bulls continue to look for a close above 100.295 to confirm
breaks of DMAs and shift pressure back to 2018 highs. Support layers are
building with bears now needing a close below 100.265 to gain breathing room and
below 100.255 to shift focus back to 100.215-235.
     US 10-YR FUTURE TECHS: (U18) Below 118-30 To Pressure 2018 Lows
*RES 4: 121-03  High May 30
*RES 3: 120-24  Hourly resistance May 30a
*RES 2: 120-16  Hourly resistance May 30
*RES 1: 119-30+ Hourly resistance June 1
*PRICE: 119-19+ @ 0430GMT
*SUP 1: 119-11  Low May 28
*SUP 2: 119-06+ 21-DMA
*SUP 3: 118-30  Low May 24
*SUP 4: 118-19  High May 22 now support
*COMMENTARY: The lack of follow through on fresh 3mth highs was less than ideal
last week given O/B daily studies. Bears now look for a close below 118-30 to
confirm a break of the 21-DMA and shift initial focus back to 2018 lows.
Correcting O/B studies are adding weight to the bearish case. Bulls still need a
close above 119-30+ to gain breathing room and above 120-16 to shift immediate
focus to 121-03 highs from last week.
     US 10-YR YIELD TECHS: Supported Below 55-DMA
*RES 4: 3.050 - Low May 22 
*RES 3: 3.014 - High May 24
*RES 2: 2.973 - 21-DMA 
*RES 1: 2.955 - Low May 24 now resistance
*PRICE: 2.935 @ 0430GMT
*SUP 1: 2.900 - Low June 5 
*SUP 2: 2.860 - Low June 1 
*SUP 3: 2.821 - Hourly support May 30 
*SUP 4: 2.790 - Hourly support May 30a
*COMMENTARY: Bulls take comfort in the marginal break of 2.902 finding support
below the 55-DMA (2.909) and pressure remaining on 2.955-3.014 the 21-DMA is
noted. Above 3.014 is needed to confirm a break of the 21-DMA and add support to
the initial case for a retest of 2018 highs. Correcting O/S studies add support
to the bullish case. Bears now need a close below 2.900 to gain breathing room
and below 2.860 to reconfirm focus on 2.717-759 where Mar & May lows are noted.
     EUROSTOXX50 TECHS: Topside Follow Through Still Lacking
*RES 4: 3540.03 High May 28 
*RES 3: 3523.76 21-DMA 
*RES 2: 3519.19 200-DMA
*RES 1: 3497.32 High June 5
*PREVIOUS CLOSE: 3456.79
*SUP 1: 3446.30 Hourly support June 1
*SUP 2: 3420.84 Low June 1 
*SUP 3: 3383.17 Alternating daily support/resistance 
*SUP 4: 3379.53 100-WMA
*COMMENTARY: Despite daily studies correcting from O/S and adding support to the
bullish case, failure to gain traction on pops above 55 (3473.23) & 100
(3475.14) DMAs is less than ideal. Bulls now need a close above 3497.32 to
confirm traction above 55 & 100-DMAs and above 3540.03 to confirm a break of the
200-DMA and return focus to 2018 highs. Bears still need a close below 3446.30
to ease renewed bullish pressure and return focus to 3383.17.
--MNI Beijing Bureau; tel: +44 207-862-7435; email: kyle.shortland@mni-news.com
[TOPICS: MTABLE]