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Markets Roundup: Risk-Off on Geopol Risks Over Weekend

US TSYS
  • Curves twisting steeper in the last half hour, short end outperforming (TUZ3 +1 at 101-10.12) around the time Israeli military spokesman headlines made the rounds: "ISRAELI ARMY SAYS GROUND FORCES EXPANDING ACTIVITY IN GAZA: AP".
  • Current Dec'23 10Y trading steady at 106-11 vs. 106-13 high, 10Y yield +.0091 at 4.8536%. 3M10Ycurve +1.891 at -60.317, 2Y10Y +2.576 at -17.128. Initial technical resistance at 106-29 (20-day EMA).
  • Nascent support in equities appears to be evaporating on the headlines as well, longs squaring ahead the weekend (SPX Eminis currently -20.0 at 4136.25).
  • Cross asset summary: US$ index unwound early support DXY currently -.043 at 106.559; CBOT vol index VIX +0.64 at 21.32; Crude rallied, WTI +2.0 at 85.21; Gold +9.55 at 1994.26.

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