Archived IMT (2011.01.10)

DO NOT FORGET US BOND AUCTIONS; Much emphasis placed on this weeks bond auctions from Portugal, Spain and Italy, but dont forget the $66 billion in new supply issued in this weeks US Treasury auctions. $32 billion in 3-year note, $21 billion in 10 year notes and $13 billion in 30-year bonds will be issued on Tues, Wed and Thurs respectively. FX markets tend to boost the USD in the event of rising yields resulting from disappointing Treasury auctions. This explains the debt and growth-related reasons to the back-up in US bond yields and the resulting positive impact on the US currency. $GBPUSD resistacne intact at 1.5630 before fresh damage ensues. $EURUSD offers ascertained at 1.2950s for fresh retest of 1.2880s./