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Tsys Look to Extend Early Highs as Stocks Gap Lower

US TSYS
  • No obvious headline trigger for the latest move as Tsy futures look to extend early morning highs (TYU4 113-01 +2.5) as stocks reverse early support/gap lower: SPX Eminis trade down to 5350.0 from 5380.0 prior.
  • Curves twist steeper, 2s10s +1.122 to -10.623, 5s30s +2.133 at 44.212 with bonds lagging the latest move.
  • Projected rate cut pricing into year end gains slightly vs. earlu morning levels (*): Sep'24 cumulative -39.1bp (-38.1bp), Nov'24 cumulative -70.6bp (-67.7bp), Dec'24 -102.2bp (-100.6bp) -- basically back to late Friday levels.

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