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Firmer Start, Cash Tsys Closed Today

US TSYS

TYZ3 has opened dealing at 107-07, +0-12, firming in early trade as safe-havens gain after the Hamas attack on Israel, this morning the WSJ reported "Iran helped plan the attack over several weeks", the same article states "U.S. officials say they haven't seen evidence of Tehran's involvement”. Technical resistance comes in at 107-14, high from Oct 3.

  • Cash tsys finished on Friday 6-9bps cheaper across the major benchmarks, the belly lead the cheaps.
  • A reminder that cash tsys are closed today for the observance of a US holiday.
  • Tsys were pressured in the aftermath of Friday's NFP print following strong job gains in September, before paring losses through the session as participants focused on a slowing in AHE and the softening in trend growth for non-supervisory roles.
  • Support in TYZ3 comes in at 106-03+, the low from Sep 4 as the bear trend remains intact. A break through here opens 105-17 2.0% lower 10-DMA envelope.
  • The highlight of the docket this week is September PPI and FOMC September Meeting Minutes on Wednesday and September CPI on Thursday.

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