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Post-PPI Data React

US TSYS
  • Fast two-way trade as Treasuries pare gains after PPI final demand came out higher than expected at 0.5% vs. 0.3% est (YoY 2.2% vs. 1.6% est). Still off overnight highs, 10Y yield up to 4.6015% before slipping back to 4.5850% (-.0680) as market continues to digest data.
  • Dec'23 10Y futures (TYZ3) dipped to 107-29 low has bounced back to 108-02.5, initial technical resistance for TYZ3 at 108-11, support well below at 106-12 (2.0% Lower Bollinger Band).

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