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Potential Support Drivers

US TSY FUTURES

Stimulus related headlines remain key driver for rates:

House Majority Leader Hoyer on MSNBC says Speaker Pelosi and Tsy Sec Mnuching "want to make a deal" says Pres Trump is "erratic, impulsive on talks". US$/Yen bounce contributing factor as well (105.55H).

Technical view: TYZ maintains a bearish stance;

  • Price action has traded lower since Sep 29 but more recently, a consolidative tone has set in;
  • This pause has taken on the appearance of a bear flag. This is a continuation pattern and suggests that bearish pressure is likely to dominate near-term;
  • Next major support at 138-18+, Aug 28 low and bear trigger, break would open 138-04+, a Fibonacci projection;
  • 139-06, Oct 6 high is resistance

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