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Post-Housing Starts/Build Permits Reaction

US TSY FUTURES
  • Delayed reaction, Treasury futures inching higher after both Housing Starts (1.434M vs. 1.480M est, May down revised to 1.559M from 1.631M), Build Permits (1.440M vs. 1.5M est) come out softer than expected.
  • Still off early London session highs, Sep'23 10Y futures trading 113-03.5 +11.5 -- nearing initial resistance recent of 113-08 - July 18 high and best level since June 29.
  • The contract has cleared the 20-day EMA and attention turns to a key resistance area at the 50-day EMA, at 113-09+. A clear break of this average would strengthen a bullish theme.

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