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Market Roundup: Bond Extending Lows, Curves Rebound

US TSYS

Rates trade weaker, curves rebound steeper with long end early session lows after the open: 2s10s +3.748 at 25.032, 5s30s +1.359 at -1.120. (30YY taps 3.0238 high, +.0266).

  • Latest Block buy in short end: +10,000 TUM2 105-12.38, buy through 105-12.12 post-time offer at 0849:11ET.
  • No data as yet, light volumes (TYM2 just over 330k) with Asia and London out on extended spring holiday. Trading desks pointing out weaker BTP Italian bonds sliding to 2+ year lows (also no news, technicals sited).
  • US technicals: continued bearish outlook: MA studies are in a bear mode and fresh cycle lows on Apr 22 confirmed a resumption of the primary downtrend and an extension of the bearish price sequence of lower lows and lower highs. The focus is on 118-02+ next, a Fibonacci projection.
  • On the flipside, key short-term resistance has been defined at 120-18+, the Apr 27 high.
  • Cross-assets: Gold extends sell-off -$35.57 at $1861.36; WTI Crude Oil (front-month) down $3.82 at $100.88

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