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Extending Lows

US TSY FUTURES
  • Absent data or relevant headline trigger, Tsy futures are extending session lows, some desks citing moderate gains in stocks after the cash open (SPX Eminis taps 4318.5).
  • Front month 10Y futures tap 113-06.5 low (-17), yield 3.7762%. The technical outlook remains negative for now, following the bearish engulfing candle pattern on June 2. The candle highlights a reversal and the bear trigger at 112-29+, May 26 / 30 low, remains exposed. Clearance of this level would resume the downtrend that started May 4 and open 112-16+, a Fibonacci retracement.

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