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Treasury futures remain soft. Tuesday’s move lower resulted in a break of support at 113-22+, the Dec 12 low and a key short-term level. This undermines the recent bull theme and instead suggests scope for a deeper retracement. The focus is on 112-11+, the Nov 21 low. Note that the contract has pierced the 50-day EMA - at 113-15. A clear break would strengthen the bear threat. Key resistance is at 115-11+, the Dec 13 high.
The 20Y Bond re-open auction takes place at 1300ET today (not 1130ET as in our earlier note).