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Post-Flash PMI React

US TSY FUTURES
  • Futures holding mixed levels after S&P Flash PMIs, long end still bid vs. weaker 2s-10s after lower than expected Manufacturing PMI (48.2 vs. 49.5 est, 49.4 prior) while Services and Composites come out stronger than expected: 51.3 vs 50.7 est and 551.0 vs. 50.5 est respectively.
  • TYH4 112-16 (-.5) at the moment, curves flatter (2Y10Y -3.584 at -50.538. Tsy 10Y futures still well within technical levels: resistance at 112-28.5 (1.618 proj of the Oct 19 - Nov 3 - Nov 13 price swing). Initial support well below at 111-09+ (High Dec 7 and a recent breakout level).

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