10s Register Fresh Cycle Yield High, Powell Due

TYZ3 last -0-11 at 105-17, 0-03 off session lows.

• A move below worst levels of the day would expose technical support at the 2.0% 10-dma envelope (105-01+).
• Cash Tsy yields are 1.5-4.5bp higher, with the curve steepening. 30-Year Tsy yields are back above 5%, while 10s hover just above 4.95%, with the latter registering a fresh cycle high and the former eying its own cycle peak.
• Asia-Pac reaction to Wednesday’s cheapening was touted as a meaningful driver of the overnight sell off.
• A quick reminder that Wednesday saw NY Fed President Williams once again point to the need for rates to remain restrictive “for some time,” while Fed Governor Waller underscored the need to focus on the data re: assessing the need for further hikes (after making enough progress on inflation to facilitate patience) and assess the impact of higher Tsy yields on financial conditions.
• Comments from Fed Chair Powell headline the NY docket, with a raft of supporting Fedspeak also slated. Elsewhere, data highlights include the weekly jobless claims release, Philly Fed business survey and existing home sales.