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Holding Near Highs Post-Monetary Policy Report Release

US TSYS
  • Treasury futures holding near session highs after the Fed released text of Chairman Powell's semi-annual monetary policy report to Congress next week. Policy makers remain "highly attentive" to inflation risks while focus data, outlook and risks remain.
  • Lead quarterly Jun'24 10Y futures are through initial technical resistance of 110-26+ (20-day EMA) to 111-00.5 session high before slipping back to 110-29 last. Next resistance level at 111-07 50-day EMA.
  • Curves steeper but off highs: 2s10s +2.034 at -35.029 vs -33.925 high, 10Y yield 4.1934 (-.0567).

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