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Post-CPI React: Gap Bid

US TSYS
  • Treasury futures gap higher - blow throw technical resistance after slightly lower than expected May CPI inflation data: MoM (0.0% vs. 0.1% est), YoY (3.3% vs. 3.4% est), Ex Food and Energy MoM (0.2% vs. 0.3% est), YoY (3.4% vs. 3.5% est),
  • Sep'24 10Y Treasury futures are currently trading +28.5 at 110-14 vs. 110-16 high, well through initial technical resistance at 109-27 (50% of of the June 7-10 sell-off) with focus on 110-21 (June 7 high).
  • Cash yields broadly lower: 5s -.1513 at 4.2669, 10s -.1327 at 4.2713%, 30s -.0949 at 4.4417%, while curves bull steepen: 2s10s +1.419 at -41.793, 5s30s +5.567 at 17.214.

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