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Treasury Sell-Off Continues

US TSYS
  • Today’s Tsy sell-off has seen TYH2 futures hit brief session lows of 130-21 for -0-16 on the day, on lower than average volumes.
  • There appears to have been some support at 130-21+, whilst next support is seen at 130-17 (20-day EMA) after which it could open the key short-term level defined at 129-31 (Dec 8 low).
  • Resistance is seen at 131-16 (Dec 3 high) where a clear break would confirm a resumption of the recovery that started Nov 24.
  • Up next: US TSY $20B 20Y Bond auction re-open (1300ET) before Biden speaking on Omicron developments (1430ET).

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