UST MORNING CALL: 10Y Sale in Focus, Foreign Demand May Support
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- Treasuries little changed overnight, analysts shift focus to 10Y supply.
Alert: HALISTER1- Allotment data for end-May auctions show rise in sponsorship driven largely by international demand, 10Y auction should be smooth if end-user demand remains elevated, JPMorgan says in a client note
- RBS says in note that 10s are rich on the curve due to foreign, domestic real-money demand; will be watching auction sponsorship to see if demand still strong or has been satisfied
- May see some consolidation today, given supply, though low bund, JGB yields overnight emphasize persistent downward pressure on global rates, may also serve to contain Treasury yields, CRT says in note
- Technicals:
- Resistance: 131-02+ (May 6 high, pivot r1), 131-05+ (April 7 high), 131-26 (3sd from 50-day range avg.)
- Support: 130-20 (June 6 low), 130-14+ (June 3 mid price), 129-27 (June 3 low)
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
UUID: 7947283