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JGB TECHS

(M1) Bullish Focus

AUSSIE 10-YEAR TECHS

(M1) New Multi-Month Highs

USDCAD TECHS

Clearing Major Support

AUDUSD TECHS

Sizeable Resistance Building

EURJPY TECHS

Needle Still Points North

US TSYS

T-Notes have inched higher from the off and last trade +0-02+ at 139-08+ amid a continued deadlock in U.S. fiscal talks and after a strong 10-Year Tsy auction seen overnight. The latest leg higher coincided with an analogical move in spot gold.

  • The White House and Democrats not only failed to make progress in their negotiations, but Tsy Sec Mnuchin accused House Speaker Pelosi of misrepresenting the phone conversation they held earlier on the day, noting that the "Democrats have no interest in negotiating".
  • U.S. President Trump's latest presser was largely a rehash of what we already knew. He reiterated his pledge to terminate payroll tax if he wins re-election, adding that he will protect social security when the tax is eliminated.
  • Fed's Kaplan joint the choir of officials calling for an extension to unemployment benefits and noted that another hard lockdown would not be a good answer for U.S. economy.
  • Meanwhile, Fed's Daly said that there may come a time when forward guidance is needed, adding that this is a very powerful tool.
  • Cash curve ins undergoing some bull flattening, with yields last seen 0.2-1.8bp lower.
  • Eurodollars sit unch. to +0.5 tick through the reds.
  • Initial jobless claims and speeches from Fed's Bostic & Brainard figure on today's U.S. docket.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com