Cash Yields Open Lower, As Outright Buyers Emerge

TYH4 is trading at 110-29, + 04 from NY closing levels.

• Futures have opened slightly higher in Asia trading, with outright buying fueling the push higher. This follows Monday's sharp sell-off (Powell and better data the key drivers).
• In terms of technicals, the Mar'24 10Y futures hit a low of 110-22+ on Monday, below the Jan 19 support level of 110-26. Moreover, the close below 110-26 could now signal a bear trigger and see another move lower to the Dec 13 support of 110-16.
• Cash yields pushed higher in Monday US trading, with the curve 10-15bps wider, the 2Y was 10.8bps higher while the 10Y was 13.8bps higher into the close. The large move the past two days (27bps for the 10Y) has seen outright yield buyers emerge and cash yields are opening 1-2bps lower in Asia Tuesday dealings.
• Tuesday focus: no data, but several Fed speakers are scheduled: Cleveland Fed Mester economic outlook at 1200ET, MN Fed Kashkari moderated Q&A, livestreamed at 1300ET, Boston Fed Collins open remarks labor conference, livestreamed, no Q&A at 1400ET, Philly Fed Harker on Fed role in the economy, text, Q&A at 1900ET.