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Market Roundup: Extending Lows

US TSYS

After trading steady/mixed post-data, tsy futures extending past late overnight lows last couple minutes. Yield curves steeper vs. Tue's settles, 5s10s sill inverted at -9.239 vs. -10.928 low; 2s10s at 5.264 after inverting briefly Tue.

  • Little react to March ADP employ data at +455k near +450k est; US Q4 GDP +6.9% vs. +7.1% est.
  • No react to Richmond Fed Barkin opening remarks at rural eco-event -- no comment on policy.
  • Incoming corporate supply generating some rate lock selling in 3s, 5s, 7s and 10s.
  • Current cross asset: West Texas Crude (WTI) gaining: +$3.78 (3.63%) at $107.96; Gold +$7.36 (0.38%) at $1926.79.
  • Technicals for TYM2: The trend direction in Treasuries is bearish and short-term gains are considered corrective. A bearish price sequence of lower lows and lower highs continues to dominate and moving average conditions are in a bear mode. The recent break lower signals scope for weakness towards 120-28 next ahead of the psychological 120-00 handle. Resistance is seen at 123-12, the Mar 23 high.

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