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Bonds Extend Lows Ahead 30Y Auction

US TSY FUTURES

Tsy futures are extending lows, curves bear steepening (2Y10Y +4.254 at -40.122) with the long end leading the move ahead the $24B 30Y auction at the top of the hour.

  • Currently, USZ3 trades 113-22 low (-104), TYZ3 trades 107-29.5 (-13).
  • Initial technical support for TYZ3 below at 107-08 (20-day EMA).
  • WI 30Y is climbing higher ahead the cut-off at the top of the hour:
    • 30Y WI up to 4.717% vs. 4.697% earlier, 12bp cheaper to last month's modest tail: 4.837% high yield vs. 4.802% WI.

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