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JGB TECHS

(Z1) Bearish Trend Condition

AUSSIE 10-YEAR TECHS

(Z1) Bearish Price Sequence

AUSSIE 3-YEAR TECHS

(Z1) Off Recent Highs

US 10YR FUTURE TECHS

(Z1)‌‌ Support Appears Exposed

BOND SUMMARY

The U.S. House backed U.S. Pres Trump's call for boosting stimulus checks to $2,000 from $600, lending support to risk sentiment amid lingering optimism seen since the POTUS signed off on the Covid-19 relief bill. The vote created a loyalty dilemma for GOP Senators, who will have to decide between sticking to party line and supporting the outgoing Republican President. Most expect the bill to face headwinds in the upper chamber, while Democratic Senators pushed for a vote as soon as Tuesday. After passing legislation re: stimulus checks, the House voted to override Pres Trump's veto of the Defence Bill, which enjoys broad, bipartisan support in both chambers. T-Notes sold off albeit uncertainty re: fate of the stimulus checks proposal in the Senate likely cushioned losses, while markets continued to eye familiar coronavirus worry. When this is being typed, T-Notes trade -0-01+ at 137-28, off session low located at 137-26+. Cash Tsy curve runs steeper, with yields last seen -0.2bp to +1.5bp. Eurodollar futures trade unch. to +0.5 tick through the reds.

  • JGB futures slipped into the lunch break but managed to claw back marginal losses and last trade at 151.98, 4 ticks above last settlement. Cash JGB yields mostly sit marginally below neutral levels, with the super-long end underperforming. Local equity markets provided some interest, as the Nikkei 225 hit multi-decade highs.
  • In Australia, YM trades unch., XM +2.5. Cash ACGB curve bull flattened, though 10s outperformed. Bills trade -1 to +1 tick through the reds.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com