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Post ISM Services React

US TSY FUTURES
  • Treasury futures gap higher, extend session highs after lower than expected ISM Services Index (52.6 vs. 53.0 est) and Prices Paid (58.6 vs. 62.0 est) -- as well as lower than expected Factory Orders (-3.6% vs. -2.9% est); Ex Trans (-0.8% vs. -0.1% est) data.
  • Jun'24 10Y futures currently +18 at 111-10 vs. 111-15 high, through technical resistance at 111-11.5 (38.2% retracement of the Feb 1 - 23 bear leg), focus on 111-24.5 (High Feb 13). Curves bull flatten: 2s10s -2.578 at -41.656.
  • Balance of data largely in-line: Durable Goods Orders final (-6.2% vs. -6.1% est) Ex Trans (-0.43% vs. -0.3% est), Cap Goods Orders Nondef Ex Air final (0.0% vs. 0.1% prior), Cap Goods Ship Nondef Ex Air final (0.9% vs. 0.8% prior).

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