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Continued Bull Flattening On Below Average Volumes

US TSYS
  • Treasuries from the belly out to long end have rallied to new session highs, led by a further compression in inflation breakevens.
  • 10YY are down -4.1bps at 1.747% (just off 1.740%), of which -3bps has come from breakevens, pushing 2s10s down 2.5bps to 60bps and closer to the post-FOMC lows of 57bps.
  • TYH2 stands at 128-07+ (just off 128-10), close to initial resistance at the 20-day EMA of 128-11+ after which it could open 128-27 (Jan 13 high).
  • Volumes continue to lag at ~85% of average for this time of day.

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