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Extending Early Highs

US TSY FUTURES
  • Treasury futures continue to extend early session highs, curves bull flattening (3M10Y -9.205 at -122.065, 2Y10Y -1.032 at -73.644) with intermediates to long end outperforming.
  • No obvious headline or Block/cross driver in the lead-up to S&P Global US Manufacturing PMI (49.0 est), US Services (52.0 est), Composite (51.5 est) at 0945ET. European markets bounced overnight following weaker than expected Services PMIs.
  • Front month Sep'23 10Y futures at 109-19 (+19), puts it back to Sunday evening levels. Initial technical resistance at 109-28+/110-12 High Aug 18 / 20-day EMA.

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