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Belated Treasury Sell-Off Weighs On Risk Assets

CROSS ASSET
  • The USD index has seen a sharp uptick recently as the S&P e-mini plumbs new session lows with Treasury yields more notably extending an initially muted sell-off after the 30Y auction tailed.
  • BBDXY pushes through yesterday's high for within 0.2% of Tuesday's high at what was the highest since Jul 7.
  • It sees USDCAD touch session highs of 1.3437 after post-CPI lows of 1.3373 although remains off yesterday’s highs of 1.3454 and Tuesday’s oversold 1.3502 (which forms resistance). Support is seen at 1.3364 (Aug 8 low) after which lies 1.3295 (20-day EMA).

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