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Inside Range Into Early Holiday Close

US TSYS
  • Still weaker, Tsy futures back near midmorning highs at the early close" TYH4 at 112-13.5 (-5.5) last, compares to session low of 112-07 -- well inside technical levels: initial resistance above at 112-26+ (High Jan 12), initial support at 111-06+ (Low Jan 05)
  • Volumes remain very light, TYH4 just over 250k, with most markets closed in observance of the Martin Luther King Holiday. Monday Globex re-open at 1800ET precedes normal session hours Tuesday.
  • As noted earlier, Tsys appeared to follow EGBs lead after ECB Holzmann's hawkish opinion of no rate cut in 2024. On the flipside, former ECB economist Riccardo Trezzi told MNI he expects the ECB to reduce its benchmark deposit rate by around 150 basis points this year.
  • Cross assets: CME S&P Eminis see-saw off lows: ESH4 -3.0 at 4813.5 (DJIA and Nasdaq closed for MLK holiday), Crude weaker (WTI -.23 at 72.45), Gold firmer: +5.79 at 2054.85.

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