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Taking Another Leg Off Lows

US TSYS
  • As noted an hour ago - Tsy futures continue to climb off post-data lows as stocks are now trading higher, ignoring prospect of tighter policy following this morning's strong Sep job gains (+336k vs. +170k est).
  • Treasury futures still shy of the pre-data levels (TYZ3 at 106-29, -12), initial technical resistance at 107-14 (Oct 3 high) followed by firm resistance at 108-12, the 20-day EMA.
  • Heavy volumes into the London close, TYZ3 >1.7M, curves well off this morning's highs: 3M10Y +3.121 at -76.054 vs. -63.477 high, 2Y10Y -.570 at -31.176 vs. -24.882 high (least inverted since October 2022).
  • Cross asset summary: Greenback reversed post data highs - making session lows (DXY -.257 at 106.075 vs. 106.974 high), Gold higher (+13.38 at 1833.68), crude near steady (WTI +0.11 at 82.42). Stocks making session highs with S&P E-Mini futures up 28.75 points (0.67%) at 4320, DJIA up 224.26 points (0.68%) at 33343.92, Nasdaq up 115.9 points (0.9%) at 13335.32.
  • Looking ahead to next week: September PPI and FOMC minutes on Wednesday, CPI Thursday.

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