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Post-CPI, Weekly Claims React Update

US TSY FUTURES
  • Extending lows, curves steeper with the short end resisting post-CPI, weekly claims-tied selling (3M10Y +2.965 at -133.564; 2Y10Y +1.053 at -32.336). Data still being digested but deemed slightly less dovish than anticipated.
  • Pre-auction short sets ahead today's $21B 30Y Bond auction re-open and pick-up in corporate high grade debt issuance contributing to latest pressure:
  • TYH4 taps 111-19.5 low (8.5), still above initial technical support at 111-06+ (Low Jan 05) followed by 110-29+ (50-day EMA). 10Y yield remains above 4% at 4.0529% (+.0246)

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