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Post-CPI React

US TSYS
  • Fast two-way trade as Treasuries gap higher - extend highs and quickly reverse to lower after July CPI inflation data comes out nearly in-line with expectations.
  • Tsy Sep'24 10Y traded up to 114-02 high, currently at 113-14 (-6). Technical resistance at 114-03/115-03+ (High Aug 6 / 5 and the bull trigger) now focus on support at 112-11 (20-day EMA).
  • Curves twist flatter: 2s10s -4.095 at -13.176, 5s30s -3.695 at 44.821.

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