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Post-ISM, Construction Spending React

US TSYS
  • Treasury futures continue to extend session highs after lower than expected ISM Mfg, New Orders and Employment figures, Prices Paid little higher than expected while Construction Spending looks lower than expected with prior read down-revised.
  • Tsy Sep'24 10Y futures climb to 112-23 (+29), highest level since March 8. 10Y yield breaches 4.0% for the first time since February 2, to 3.9760% low.
  • Through technical resistance at 112-20+ (1.618 proj of the Apr 25 - May 16 - 29 price swing), focus now on 113-00, psychological round number resistance.
  • Curves remain mildly steeper, 2s10s +.397 at -22.595.

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