Halister News

(Bloomberg) -- Focus on payroll data, set-up has been via buying downside in eurodollar options; risks asymmetric, would take a strong beat to move Fed expectations, BofAML analysts write in a client note.

• Some evidence of bearish technical set-up in USTs, “great importance” on payrolls, as 10Y needs convincing break through support at 1.42% to confirm a short-term trend reversal is unfolding, JPMorgan says in client note
• Setting-up of shorts in the front-end via options by fast money investors motivated by potential for pricing of further near-term Fed tightening after a solid jobs report, Morgan Stanley says in client note
  • Not seeing much likelihood of long-end rates moving up sustainably given large duration needs globally: MS
• BNP analysts write in client note that they turn short-term neutral on the longer end of the curve, after reaching 1.40% target, look to re-initiate longs at more favorable levels
• Technicals:
  • Resistance: 134-07+ (July 6 high), 134-27 (pivot r3)
  • Support: 133-11 (July 7 low); 133-00 (July 5 low); 132-14 (June 30 low)