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CROSS ASSET: US Tnotes is clearing the December low

CROSS ASSET
  • Tnotes is clearing the December low, again while it is not fast it has been a one way price action since Yesterday afternoon and into the European session today.
  • The move in the US has limited the bounce in Bund, which is slowly catching up with the Italian BTP, with the latter weighted ahead of the Italy Heavy supply.
  • Next support in TYH5 is seen towards 110.12+ (Yield level).
  • Technically for Bund, 135.51 20-day EMA is the next area to watch.
  • In Terms of Yield, next target would be at 2.208% in the german 10yr, today would equate to 135.04.
  • USDJPY stays underpinned/bid.
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  • Tnotes is clearing the December low, again while it is not fast it has been a one way price action since Yesterday afternoon and into the European session today.
  • The move in the US has limited the bounce in Bund, which is slowly catching up with the Italian BTP, with the latter weighted ahead of the Italy Heavy supply.
  • Next support in TYH5 is seen towards 110.12+ (Yield level).
  • Technically for Bund, 135.51 20-day EMA is the next area to watch.
  • In Terms of Yield, next target would be at 2.208% in the german 10yr, today would equate to 135.04.
  • USDJPY stays underpinned/bid.