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Extending Late Session Lows

US TSY FUTURES
  • Treasury futures are extending late session lows amid confluence of less tighter credit conditions reported by the Fed's latest Sr Loan Advisor Survey (SLOOS) for Q3, and as corporate supply continues to generate rate lock hedges after $6B RTX Corp 5-tranche and $5.5 Roche 5-tranche issuance surprises to the upside.
  • Both Tsy and SOFR futures have nearly unwound all of Friday's rally at the moment, TYZ3 -22.5 at 107-21, still well above initial technical support of 106-31 (20-day EMA). SOFR Red pack (Dec 24-Sep 25) -0.130-0.145.
  • Tsy curves mixed: 3M10Y +8.192 at -77.266, 2Y10Y -.638 at -27..681.

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