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Steady Reversal

US TSY FUTURES
  • Front month Treasury futures continue to scale back from midmorning highs across the board, no obvious headline or block driver for the reversal.
  • Currently, June 10Y futures are 115-23.5 (+1) vs. 116-03 high, 10Y yield is currently at 3.4149% vs. 3.3681% low.
  • Initial support to watch lies at 115-05, the 20-day EMA. This average has recently provided support, however, a break would signal scope for a deeper retracement - down to 114-18 potentially, the Apr 3 low.
  • Curves maintaining steeper profile, however, 2s10s +4.140 at -53.209.
  • Pre-auction short sets noted ahead the US Treasury $60B 4W, $50B 8W Bill auctions at 1130ET; $18B 30Y Bond auction re-open (912810TN8) at 1300ET.

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