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Post ISM Services Data React

US TSY FUTURES
  • Tsy futures extend lows after higher than expected ISM Services data, particularly Prices Paid (64.0 vs. 56.7 est), Services Index (53.4 vs. 52.0 est), New Orders (55.0 vs. 54.8 est), Employment (50.5 vs. 49.4 est).
  • Testing initial technical support, Mar'24 10Y futures currently trading -26.5 at 110-26.5 vs. 110-24.5 low, through support of 110-26 (Low Jan 19 and bear trigger), next level 110-16 (Low Dec 13)
  • Curves remain steeper: 2s10s +3.857 at -30.964, 10Y yield 4.1521% (+.1322).
  • Little react to Chicago Fed Goolsbee comments on Bbg, stating the Fed does not want to rule out a March cut.

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