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Market Roundup: 10YY Tops 3% Again, Following Gilt Lead

US TSYS

Mirroring moves in Gilts, Tsy/Eurodollar futures continue to extend session lows into midmorning, overall volumes still rather light (TYU2 440k) as yield curves bear steepen: 2s10s north of 30.0 again at 30.955 high (+3.489). Tsy 30YY at 3.1798 high (+.0936).

  • Sep 10YY at 3.0362% (+.1030) w/ futures just through key short term support of 118-01 at 117-30.5 (-19), puts focus on next key support of 117-18 Low May 11 followed by 116-21 Low May 9 and a bear trigger.
  • No data to react to today, Fed speakers in self-imposed media blackout re: policy through June 16, limited data Tue: Trade Balance (-$89.4B est) and Wholesale Inventories MoM (2.1% est).
  • Stocks still firmer but paring gains last few minutes, ESM2 +34.0 at 4141.0. Highlight new in equities is Tesla's Elon Musk lodging breach of purchase contract complaint w/ SEC over Twitter not providing spam/bot data from micro-blogger (TWTR -3.75 aty 38.65 at the moment, 37.91 low).
  • Markets await UK PM Boris Johnson confidence vote results around 1600ET.

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