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Bonds Near Midday Highs Ahead 10Y TIPS Auction Re-Open

US TSY FUTURES
Tsys have see-sawed off morning lows to just off midday highs, trading desks reporting two-way trade across the board ahead the $14B 10Y TIPS auction that drew -0.540% high-yield back on Jan 20.
  • Short end remains under pressure, trading desks reported domestic real$ selling in 2s earlier (various dealers starting to support 50bp hikes at May 4 FOMC). Two-way option-tied flow ahead serial April options expiring Friday, deal-tied selling across the curve.

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