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Post Services/Composite PMI React

US TSYS
  • Still well bid, Treasury futures pare gains after higher than estimated S&P Global US Services PMI final (52.3 vs. 51.4 est), Composite final PMI final (52.5 vs. 51.4 est).
  • Jun'24 10Y futures currently +11.5 at 111-03.5 - through initial technical resistance at 111-02 (High Mar 1) followed by 111-06 (50-day EMA) breached briefly as futures tapped 111-07 high.
  • Next up at 1000ET: Factory Orders and ISM Services. Given that Core Service prices have been cited by the Fed as a hurdle in the inflation fight, this release could have a bit more importance than usual. Durables and Cap Goods also released at 1000ET.

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