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EURJPY TECHS

Needle Still Points North

BTP TECHS

(M1) Downtrend Accelerates

GILT TECHS

(M1) Key Support Zone Exposed

USDJPY TECHS

Fierce Bounce, But Needs to Stick

EURGBP TECHS

At Risk of Bearish Breakout

US TSYS
US TSYS: Tsys accelerated to the downside in the latter half of Asia-Pacific
trading as 10-Year yields topped 3.20% for the first time since '11, while a
notable downside Tsy option expression (block trade TYX8 117.50 put paper paid
0.27 on 20.0K, market quoted 0.23/0.24 at the time) added additional weight.
T-Note futures had edged back from their early session lows, perhaps aided by a
slight downtick in the JPY crosses that sources have attributed to corporate
hedging flows. This comes after a heavy sell off on Wednesday aided by firm ADP
& ISM non-m'fing data in the U.S. morning, with rhetoric from Fed Chair Powell
adding additional weight late in the day, which allowed T-Notes to close at
session lows as yields clocked multi-year highs. Fed Chair Powell noted that
"very accommodative policy is no longer appropriate in the current environment,
which calls for interest rates to "very gradually" move toward neutral. We may
go past neutral, but we're a long way from neutral at this point."
- Eurodollar future volumes are running well above average, with large downside
expressions via EDZ0 and EDM1 put options noted overnight.
- T-Notes last 117.23+, U.S. 10-Year cash Tsy yields last 3.212%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com