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10yr Futures Through Wednesday Highs

US TSYS

US Tsy futures have pushed through Wednesday highs in recent dealings. We were last at 108-16, +05+ (highs for the session just a touch higher at 108-17). Highs from the end of last week aren't too far away at 108-25 (which came post the NFP data).

  • Headline catalysts for the move have been absent but we may be seeing some spill over from the slightly weaker than expected China CPI print which came out a short while ago.
  • Comments from Philadelphia Fed President Harker also crossed. He reiterated his stance of holding rates steady, but stated rates would stay higher for longer.
  • In the cash Tsy space, yield weakness is more evident at the front end, 2yr off by a little over 1bps to 4.92%. The 3-5yr tenors are also down by around 1bps.

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