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Post-Tsy Refunding Increase Reaction: Extending Lows

US TSY FUTURES
  • Treasury futures bounce slightly before extending lows following Tsy quarterly refunding announced in-line increase of $7B: 3Y note +$2B to $42B, 10Y notes +$3B to $38B, 30Y Bond +$2B to $23B.
  • Curves bending steeper as intermediates to long end trade weaker vs. short end, Sep'23 10Y futures steady at 110-28, above initial technical support of 110-25.5 (July 28 low), 10Y Y marks 4.0634% high; Sep'23 2Y +.5 at 101-14.75.

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