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USDJPY TECHS

Trend Conditions Remain Bullish

UK

Timeline of key events (Times BST)

EUROZONE

Timeline of key events (Times BST)

EURGBP TECHS

Remains Vulnerable

GBPUSD TECHS

Bearish Risk Still Present

AUSSIE BONDS

Looking For Cues

Range Breaks In The Long End

US TSYS

The latest downtick for the U.S. Tsy space comes ahead of European hours after market participants seemingly chose to focus on the prospect of a U.S. fiscal deal, as opposed to when it may occur, given the apparent pushback from Senate majority leader McConnell re: a pre-election pact on Tuesday. Messrs Mnuchin & Peolsi will speak again today.

  • This dynamic, coupled with some concession ahead of today's 20-Year Tsy supply, facilitated curve steepening in Asia-Pac hours, with 10- & 30-Year yields pushing through their respective recent range highs. A clean, sustained break here would allow participants to focus on the June highs in both metrics. Yields sit 0.8-5.2bp higher across the curve at typing.
  • T-Notes are running on well above average volume (~182K at typing) last -0-08 at 138-14+.
  • Eurodollar futures are unchanged to 0.5 tick lower through the reds.
  • Focus on Wednesday moves to another slew of Fedspeak, in addition to the aforementioned round of 20-Year Tsy supply.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com