Cash Bonds Open Little Changed

TYH4 is trading at 111-05, -0-01+ from NY closing levels.

• Cash bonds are dealing flat to 1bp cheaper in today’s Asia-Pac session.
• This comes after US tsys twist-steepened, pivoting at the 5s, with yields 1bp lower to 5bps higher. US tsys reversed early gains after lower-than-expected Initial Jobless Claims and higher than expected Building Permits and Housing Starts. MNI’s Chicago Business Barometer was also revised up to 47.2 in December from 46.9.
• Fedspeak: Philly Fed Harker suggested a heightened chance of a soft landing, while Atlanta Fed Bostic repeated that he expected policymakers to begin cutting interest rates in the third quarter. He did however add that if there is a further accumulation of soft inflation data then cuts could begin sooner.
• Later today will see U. of Mich. Sentiment, Existing Home Sales and Total Net TIC Flows. Also, Fed's Daly Speaks on Fox Business and in Fireside Chat.