Halister News

(Bloomberg) -- Job openings seen at 5.588m in June, vs 5.500 in May (forecast range 5.381m to 5.7m); data track employers taking specific action to fill newly created or unoccupied positions.

• Prior report showed May job openings dropped from record high

--FERGAL O'BRIEN

(Bloomberg) -- Spread between 2s10s U.K. bonds, which has narrowed since June last year, may see widening pressure re-emerge closer to the 34/29bps region where the trendline from 1998 and Fibonacci cluster are located, Bloomberg technical analyst Sejul Gokal writes.

• See chart
• 2s10s spread now at 41bps, narrowest since 2008
• 34/29bp support encompasses widening trendline from 1998 and 61.8% and 76.4% Fibonacci support from 1998-2010 and 2007-2010 widening cycles
• Gilt 2s30s test the 50% retracement line of 2007-2010 widening cycle and 2003 widening peak at about 120bps (see chart)
• Gilt curve extends yesterday’s flattening after BOE’s statement refrains from addressing scarcity issues
• Yields on 10- and 30-year securities fell to record lows after the BOE said the bonds it couldn’t buy Tuesday would be acquired some time during the second half of the six- month QE program

• NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

(Bloomberg) -- BCB is likely to maintain the strategy of cutting its swaps holdings without interfering in BRL/USD levels, Mauricio Oreng, senior-strategist at Rabobank, says in an e-mail interview.

• BRL may strengthen further in coming days, given external environment of yield-seeking, as Fed keeps its rate on hold for a while and other CBs continue their expansionist stance
  • No signal of global recession in addition to “constructive” politics in Brazil also help BRL
  • BRL gains may be temporary and the pair may resume 3.40/3.50 level near 2016-ending with potential U.S. Fed hike in December
  • BCB in near term may keep the pace of FX reverse swaps auctions; a pause is possible later in the year should the prospect of a weaker BRL materialize

Economic Release Details: {BZPIIPCM Index ECOD} --WALTER BRANDIMARTE

(Bloomberg) -- BRL may rally amid less political uncertainty after Senate approved trial of the suspended president Rousseff by a large margin, Georgette Boele, FX strategist at ABN Amro, says in a e-mailed interview.

• While BRL may rise towards 3.10 in the coming days and weeks, BCB will try to dampen the move
• NOTE: BZ Senate decided to put Rousseff on an impeachment trial with 59 votes vs 21; in the final vote expected to start later in August, the minimum score is 54