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(U2)‌‌ Outlook Confirmed Bearish

US 10YR FUTURE TECHS
  • RES 4: 122-29+ High Mar 31
  • RES 3: 122-16 2.0% 10-dma envelope
  • RES 2: 120-29/122-02 High Aug 4 / High Aug 02
  • RES 1: 120-22 High Aug 10
  • PRICE: 118-27 @ 15:34 BST Aug 17
  • SUP 1: 118-18 Low Aug 17
  • SUP 2: 118-05 50.0% retracement of the Jun 14 - Aug 2 bull cycle
  • SUP 3: 117-14+ Low Jul 21 and key near-term support
  • SUP 4: 117-07 61.8% retracement of the Jun 14 - Aug 2 bull cycle

Global rates re-pricing saw Treasuries fade fast Wednesday, putting prices through first support at 118-30+ and on track to test the contract 50-dma of 118-16. This sees prices complete the reversal off the 120-00 handle resistance as well as the 120-22 post-CPI high and seals the outlook as bearish. First support crosses at 118-05, the 50.0% retracement of the Jun 14 - Aug 2 bull cycle. Initial resistance remains 120-22, the Aug 10 high.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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