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Trading Heavy Ahead ADP

US TSY FUTURES
Trading weaker across the board, decent volumes (TYM>450k). Yield curves, particularly in the short end) continue to move steeper: 5s30s 154.445 (+1.565) vs. 155.532 overnight high compares to last Thu's 166.984 level last seen Aug 2014.
  • Building inflation expectations and improving growth spurring heavy consolidation tone since last week. Market looking for confirmation/gain some insight ahead Fri's Feb employ data w/ADP private employ coming up at 0815ET: +205k median est. (100k-305k range).
  • Sources reported two-way from prop and fast$ in shorts to intermediates, rate paying in 5s-10, real$ and bank selling out the curves.
  • Technicals: Treasuries are still trading within the body of price action from Feb 25. In candle terms the pattern on this day is a bearish standard line - a continuation pattern. TYM focus on 131-31, Feb 25 low. Key S/T resistance is at 134-06+, the Feb 25 high.

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