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10Y Yields Push To Three-Week Lows Although TYZ3 Finds Resistance

US TSYS
  • Cash Tsys have seen the earlier twist flattening around the Chicago PMI morph into an outright bull flattening, with the front end giving up losses seen after data including solid underlying details behind core PCE and the long-end continuing to rally.
  • Yields sit 2-4.5bps lower on the day, although 2s10s keep within latest ranges at -78bps.
  • The move has seen 10Y yields touch a three-week low although TYZ3 has met resistance at yesterday’s high of 111-03+. A renewed push higher could open 111-13+ (Aug 11 high) although gains are considered corrective with support at 109-18+ (Aug 25 low).

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