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‌‌(M1)‌‌ Stabilises After CPI Fallout

US 10YR FUTURE TECHS
  • RES 4: 134-20 100-dma
  • RES 3: 134-06+ High Feb 25
  • RES 2: 133-23 High Mar 2
  • RES 1: 133-16+ Post-NFP High May 7
  • PRICE: 132-12 @ 16:00 BST May 14
  • SUP 1: 131-27 Low May 13
  • SUP 2: 131-12 Low Apr 13 and key near-term support
  • SUP 3: 131-03+ Low Apr 6
  • SUP 4: 130-25+ Low Apr 5 and the bear trigger

US 10y futures remain weak after the sharp post-CPI sell-off, extending the downside to print 131-27. Weakness through the 20-day EMA counteracts any positive signals from the rally at the tail-end of last week, which strengthens the bearish theme and exposes support at 131-18+, Apr 29 low. To stabilise going forward, 10y futures need to break and hold back above the Wednesday highs of 132-18.

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