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Post-BOC Hike React: Extending Lows

US TSY FUTURES
  • Treasury futures extend session lows after the BOC hiked rate by 25bp to 4.75%. Front month Sep'23 10Y futures tap 113-14.5 low before bouncing back to 113-18, yield marks 3.7275% high. Curves extend inversion, 2s10s currently -3.095 at -85.362.
  • TYU3 futures continue to trade below last week’s 115-00 high, on Jun 1. Price action that day is a bearish engulfing candle, signalling the end of the recent recovery and suggesting potential for a continuation lower. Attention is on key support and the bear trigger at 112-29+, the May 26 / 30 low.

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