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What to Watch: New 16Y Yld Highs Post FED/BOE, Wkly Claims, Home Sales

US TSYS
  • Treasury futures futures bounced briefly after the BoE left rate unchanged at 5.25% but are extending lows ahead the cash open (TYZ3 -25.5 at 108-13.5) after breaching technical support overnight (next level 108-00 round number support).
  • Yields have climbed to the highest levels since Dec'07: 10YY 4.4617%, 5YY 4.6246%.
  • Heavy volumes (TYZ3>535k) as participants pile back into markets after the Fed left interest rates steady at 22-year highs Wednesday but kept the door open to one more increase in borrowing costs this year, while reducing the number of rate cuts officials see in 2024.
  • Scheduled economic data at the bottom of the hour includes weekly jobless claims, Current Account Balance and Philadelphia Fed Business Outlook. Existing Home Sales and Leading Index at 1000ET.
  • Treasury auctions: $80B 4W, $70B 8W Bill sales at 1130ET, $15B 10Y TIPS reopen (91282CHP9) at 1300ET.
  • Headline watching: No positive development as yet re: US government funding resolution to avoid a shutdown on October 1.

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