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Post Inflation Expectations React

US TSYS
  • Treasury futures holding weaker, near the middle of the session range following the NY Fed 1Y Inflation Expectations release: 3.63% vs. 3.55% prior. Treasury futures had already scaled off session highs over an hour ago, Dec'23 10Y futures currently at 109-23.5 (-6) vs. 109-28.
  • Curves hold steeper levels: 3M10Y +3.392 at -117.587, 2Y10Y +2.389 at -70.686. Moving average studies continue to highlight a medium-term downtrend. An extension lower would signal scope for 109-09+, Aug 22 low and a bear trigger. A break of this level would strengthen a bearish theme.

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