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Post-UofM Data React

US TSY FUTURES
  • Tsy futures pare gains after UofM data: lower Sentiment (60.4 vs. 63.8 est) and Current Conditions (65.7 vs. 70.6 est), inflation expectations higher than estimated: 1 Yr (4.4% vs. 4.0% est) 5-10 Yr (3.2% vs. 3.0% est).
  • Curves remain flatter (2Y10Y -1.950 at -41.773) with the long end still outperforming. Currently, USZ3 trades 113-20 (+21), TYZ3 trades 107-21 (+4).
  • Initial technical resistance for TYZ3 well above at 108-25 High Nov 3 and the next bull trigger. Initial support 107-08+ 20-day EMA

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