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Post-PCE  Data React

US TSYS
  • Fast two-way as Treasury futures gap lower/higher after in-line PCE deflator data, Personal Income/spending mixed, but not far off expectations.
  • Tsy Sep'24 10Y futures revisited overnight low of 110-00.5, has rebounded to 110-13, curves steeper at the moment: 2s10s +1.324 at -41.436, 5s30s +2.546 at 15.207.
  • Attention is on a firm short-term support at 109-26+, the 50-day EMA. A clear break of this average would signal scope for a deeper retracement, towards 109-00+, the Jun 10 low. For bulls, a resumption of gains and a break of 111-01, the Jun 14 high, would resume the uptrend and open 111-17+, a Fibonacci projection.

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