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Treasuries Steady, Volumes Low, Ranges Tight

US TSYS
  • Treasury futures have done very little in the first hour of trading on Tuesday, with volumes low and ranges tight making a high of 110-25+ and lows of 110-23, while now trading unchanged at 110-24.
  • Looking at technicals, the trend remains down with the bear trigger at 110-05+/109-25+ (Low Mar 1 / Low Feb 23), a break here would resume the downtrend and open 109-14+ (Nov 28 low) While to the upside a break of 111-01/111-02 High (Mar 4 / Feb 1) is needed in order to test 111-06+ (50-day EMA) which could signal a trend reversal.
  • Treasury Yields were flatter on Monday with yields 2-7bps higher across the curve, as cash trading gets underway yields are now unchanged to 0.5bps higher, the 2Y was unchanged at 4.602%, 10Y +0.4bp higher at 4.217%
  • Looking ahead: S&P Final PMIs, ISM Services & Factory Orders out later today.
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