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Market Roundup: Yld Curve Inversion Spreads To 3s, 5s, 7s Vs. 10s

US TSYS
Bonds continue to surge in aftermath of Fed Gov Waller hawkish comments on CNBC, StL Fed Bullard dissenter essay earlier. Yield curves bull flattening with 5s10s reinverting: -.554 (-3.045) but off Wed's post-FOMC low of -1.823%. Recession red flags as 3s and 7s also invert vs. 10s on the move. US Tsy 30YY dropped to 2.4089% recently, compares to 2.5358% high Wednesday.
  • US Biden/China Xi call headlines filtering through -- Xi sounding dovish Russia war in Ukraine: "confrontation not beneficial to anyone .. conflicts, confrontation not beneficial to anyone" while "international community should value peace, safety." Waiting for White House readout on Biden side of call.
  • Not much substance from Russia Pres Putin address at Luzhniki stadium in Moscow: 'The concert is dedicated to the eighth anniversary of Crimea's reunification with Russia" Tass, before video of event cut out.
  • Cross asset: Equities off lows: SPX emini +4.75 (0.11%) at 4405.75, while Dow trades -100.48 (-0.29%) at 34374.29, Nasdaq +102.1 (0.7%) at 13714.38. West Texas Crude (WTI) gaining again +$0.69 (0.67%) at $103.62; Gold - $10.53 (-0.54%) at $1932.17.
  • Technicals for TYM2: Despite this morning's FI rally, current trend conditions remain bearish. Monday’s strong sell-off resulted in a break of key support at 125-14+, the Feb 10 low and a bear trigger, confirming a resumption of the primary downtrend and marks an extension of the bearish price sequence of lower lows and lower highs, opening next support at 123-19+.
  • Flipside: Initial firm resistance is seen at 126-04+, the 20-day EMA.

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