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Bonds Back Near Early Highs

US TSY FUTURES

Treasury futures have see-sawed higher again, back near the top end of the range in late morning trade, curves bull flattening with short end rates lagging the move. Again, no obvious headline or Block driver, though equities are moving off lows amid modest program buying (ESU3 -10.5 at 4374.0).

  • Currently, front month Sep'23 10Y futures are +18 at 109-27 vs. 109-28.5 high, yield back down to 4.2231%. Initial technical resistance at 110-07/110-25 High Aug 15 / 20-day EMA. On the flipside, initial technical support at 109-03+ Low Aug 17.
  • Latest curve levels: 3M10Y -1.532 at -121.753, 2Y10Y -3.448 at -69.166.

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