MNI: FRANCE MAR CONSUMER SENTIMENT 81

• RES 4: 121.26 0.764 proj of the Dec 30 - Jan 19 - 30 price swing
• RES 3: 120.00 Psychological round number
• RES 2: 118.56/96 High Jan 19 / Dec 7 and a key resistance zone
• RES 1: 116.33/118.18 High Feb 9 / High Feb 2
• PRICE: 112.87 @ 15:27 GMT Feb 24
• SUP 1: 112.08 Low Feb 22
• SUP 2: 111.59 Low Jan 6
• SUP 3: 111.48 2.0% 10-dma envelope
• SUP 4: 110.77 Low Jan 4 and 76.4% of the Dec 30 - Jan 19 rally

BTP futures slipped further early Wednesday, printing a fresh pullback low at 112.08. While prices have stabilised somewhat, the near-term picture remains bearish for now. The next downside levels to watch cross at 111.67, the 2.0% 10-dma envelope. A break would be a bearish development. A reversal higher would signal scope for a test of firm resistance at 118.56, the Jan 19 high and 118.96, the Dec 7 high.

Germany, France, Austria and the EU all look to sell bills this week. We look for issuance at first round operations of E17.0bln, down from E22.3bln this week.

• Germany will kick off issuance this morning with 5/11-month bubills on offer: E2bln of the 5-month Jul 19, 2023 bubill and E4bln of the 11-month Jan 17, 2024 bubill.
• This afternoon, France will look to sell up to E6.3bln of 12/21/31/51-week BTFs: E2.3-2.7bln of the 12-week May 24, 2023 BTF, E1.0-1.4bln of the 21-week Jul 26, 2023 BTF, E0-400mln of the 31-week Oct 4, 2023 BTF and E1.4-1.8bln of the new 51-week Feb 21, 2024 BTF.
• Tomorrow, Belgium will conclude bill issuance for February with E1.8-2.2bln of 4.5/6.5-month TCs: an indicative E1.0bln of the Jul 13, 2023 TC and an indicative E1.0bln of the Medium Sep 13, 2023 TC.
• On Wednesday, the EU will kick off March funding with up to E1bln of the 3-month Jun 9, 2023 EU-bill and up to E1.5bln of the new 6-month Sep 8, 2023 EU-bill on offer.