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Near Week Highs, Month End, Strong 7Y Note Sale, Fed Waller Tonight

US TSYS
  • Treasuries are trading higher after the bell, partially driven by month end extensions and result of strong 7Y auction. Futures actually climbed to the highest level since March 14 (TYH4 110-31.5 last - testing 50-day EMA resistance) after the $43B 7Y note auction (91282CKC4) stopped through with 4.185% high yield vs. 4.192% WI; 2.61x bid-to-cover vs. 2.58x last month.
  • Jun'24 10Y futures receded to 110-28.5 (+8) by the bell, rather modest volumes on the shortened Easter Holiday week. Sole data: MBA composite mortgage applications fell for the second consecutive week, by a seasonally adjusted -0.7% in the week to March 22, with purchases -0.2% and refis -1.6%.
  • Fed Governor Christopher Waller will discuss his economic outlook at an event hosted by the Economic Club NY this evening at 1800ET, text and Q&A is expected.
  • Focus on Thursday's Weekly Claims, GDP, PCE, PMI, UofM Sentiment.

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