HALISTER1: UST MORNING CALL: Investors Eye Crude, Stocks, Corporate Supply

UST MORNING CALL: Investors Eye Crude, Stocks, Corporate Supply

(Bloomberg) -- USTs little changed after rallying initially in Asia amid WTI crude weakness and China stock sell-off, before paring gains in London hours.
  • Little data this week, Fed officials in blackout period ahead of FOMC meeting; ECB decision on Thursday likely to be the important event for the week, JPMorgan strategist Jay Barry writes in client note
    • Analysts look for limited impact from ECB meeting (see preview)
  • With lack of other scheduled events, focus remains on risk- asset performance; will want to monitor how U.S. market participants react to news the Kuwait oil strike has ended, independent strategist Marty Mitchell writes in a client note
  • Pressure from corporate supply and WTI rally aided yday’s UST sell-off, FTN strategist Jim Vogel writes in a client note
  • Large amount of corporate names exiting the issuance blackout period today
  • Following recent flattening, recommend 5s10s steepeners ahead of next week’s FOMC meeting, where Fed will probably deliver message of patience, RBS strategist John Briggs writes in a client note
  • Technicals
    • Resistance 130-22 (April 18 mid price), 130-28 (61.8% Fibo of April 7-14 fall), 131-01 (76.4% Fibo)
    • Support 130-06 (April 14 low); 130-02 pivot s2
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jay Barry (JPMorgan Chase & Co)
Jim Vogel (Ftn Financial)
John Briggs (RBS Securities Inc)
Marty Mitchell (The Mitchell Market Report LLC)

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