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Post-PPI Revisions React

US TSY FUTURES
  • Treasury futures support gradually evaporating after the BLS down revised PPI data for Dec from -0.1% to -0.2%. Tsys inside a narrow overnight range after bouncing off new cycle lows overnight: Mar'24 10Y trading 109-23 (+3) after marking 109-16.5 low, yield tapped 4.3301% high, levels not seen since early Dec'23.
  • Robust volumes (TYH4>675k) as rates rebounded following UK CPI miss (soon tempered by EU IP strength notably in Ireland).
  • Mar'24 10Y currently +0.5 at 109-20.5, above initial technical support at 109-17 (50.0% of the Oct 19 - Dec 27 bull phase). Curves recovering some ground after Tuesday's flattening, 2s10s currently +3.311 at -31.248.

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