musashi99 - Solution annealed materials up to about 1-1/4" is diameter are first hot rolled in coil form, solution annealed and can be processed in one of 2 ways - (1) straighten/cut/ground or cold drawn/straighten/cut. Depending on the mill, changing from a cold drawn operation to a straighten/cut operation can range from 3/4" to 1". These materials are not solution annealed after cold processing. So yes, there will be some residual stresses.
As far as the stresses in the material you are concerned with, you should be aging the parts after machining, so the aging operation should releave any of the residual stresses in the material. If you are having dimensional control problems when making the sensors, you may need to stress relieve the material first. But whether the material was cold drawn or straightened, the stresses on the outside of the material should not be much of an issue. I know of several companies making sensors for critical applications with the materials discribed above.
There were statements also made about machining thie grade in the H1150 and H1150M condition. My opinion is that this is old thinking. This condition is, of course, the softest condition and will minimize cutting forces, but you will then struggle with chip control. it would be better to machine either the solution annealed condition (Rc 28/32) or in the final aged condition. The H1150M was developed when all the tools available were tool steel. With today's carbides and coatings, this is a thing of the past. And you can be more productive in the long run.