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Markets Reverse Course, Extending Lows Again

US TSY FUTURES
  • Heavy two-way flow continues as markets digest relatively balanced speech from Chairman Powell, some desks cite Fed "will keep at it until the job is done" for latest reversal from recent highs to extending lows again: TYU3 marking 109-05.5 low (-13.5) vs. 109-23 high a few minutes ago.
  • Heavy volumes (TYU3 >2M is partially due to increasing quarterly rolling into Dec'23 futures.
  • Curves mixed: 3M10Y +2.915 at -120.565, 2Y10Y -2.609 at -81.398. Initial technical support at: 108-28/26+ Low Aug 22 / Low Oct 21 2022 (cont)

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