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Trimming Gains Following EU PMIs

US TSYS
  • Cash Tsys are firmer, inside relatively narrow range with rates recovering from Monday's sale. Support eased slightly following higher than expected inflationary measures in core European PMIs in early London trade.
  • TYH4 currently at 110-13.5 (+7.5) vs. overnight low of 110-10, moderate volumes (TYH4 appr 300k so far). Initial resistance at 110-28 (Dec 1 high) followed by 111-00 (round number resistance). Trend direction still bullish with pullbacks considered corrective: technical support well below at 109-06 (20-day EMA).
  • Session data: S&P PMIs at 0945ET, JOLTS and ISM Services at 1000ET. Main focus remains on Friday's employment data for November.
  • Federal Reserve is in their blackout period regarding monetary policy through December 14. However, Fed Gov Bowman will give a speech on inclusive financial systems at 1500ET (text, no Q&A, live streamed from Aspen Inst).
  • US Treasury will auction $70B 42D CMB bills at 1130ET.

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