Halister News

--RITA DEVLIN

--Washington Newsroom (202) 624-1820

(Bloomberg) -- Treasury futures (TY1) technical levels in focus.

• Daily Trend Bias: Bullish
• Comment: Overall focus stays higher despite some stall in momentum since Friday; bulls still need to clear the important 126-28/126-29 to re-inject fresh impetus and set the platform for YTD high test at 127-08
  • Resistance: 127-01+/127-02; 127-08
  • Support: 126-18/126-17; 126-11; 126-09+
• NOTE: Roll-adjusted by difference in GFUT
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Keith Jenkins

(Bloomberg) -- Tactical long belly of 2s3s5s butterfly beginning four days before 2Y auction and ending four days after has produced average return of 3.3bp and 100% hit ratio over past 12 cycles, Soc Gen strategists Shakeeb Hulikatti, Subadra Rajappa and Bruno Braizinha say in note.

• Next week’s 2Y and 5Y auctions are both slated for Monday, followed by 7Y on Tuesday

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Vivien Lou Chen

(Bloomberg) -- Lower house commission may approve report on creation of TLP, a new interest rate to be used by development bank BNDES, and bring positive bias for domestic assets in the short term, analysts say. But since TLP is not a controversial subject and does not require a high quorum, it is not seen as a good parameter for pension reform.

• TLP must pass the special committee on Tuesday, be sent to vote in the lower house on Wednesday and the Senate in the following week: Eurasia
• Tendencias consultancy sees greater chance of approval, but alerts for the risk of the provisional measure expiring on Sept. 6 if there is a delay in the process
• TLP is decisive and represents the concept of the new economic team in relation to BNDES, says Jose Francisco Gonçalves, chief economist at Banco Fator
• TLP is not "a very faithful thermometer" for the pension reform, since each theme has a different basis of support, says Thiago Vidal, political analyst of Prospectiva

--With assistance from Ana Carolina Siedschlag. To contact the translator on this story: Daniela Milanese in Sao Paulo at dmilanese@bloomberg.net To contact the translation editor responsible for this story: Daniela Milanese at dmilanese@bloomberg.net; Giulia Camillo at gcamillo@bloomberg.net Reporters on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net; Josue Leonel in Sao Paulo at jleonel@bloomberg.net Editor responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net

(Bloomberg) -- Following are forecasts for today’s economic releases as compiled by Bloomberg News.

• FHFA HPI 0.5% m/m; range 0.3% to 0.6% (14 estimates)

To contact the reporters on this story: Kristy Scheuble in Washington at kmckeaney@bloomberg.net; Vincent Del Giudice in Denver at vdelgiudice@bloomberg.net To contact the editors responsible for this story: Alex Tanzi at atanzi@bloomberg.net Marco Babic