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Extending Highs, Midday Fed Speak Ahead

US TSY FUTURES
  • Treasury futures are extending highs across the board heading into midday, curves little changed (2s10s +.067 at -31.778, 5s10s +.665 at 4.391).
  • Mar'24 10Y trading +16 at 111-09, yield slips to 4.0923% low, compares to 4.1694% early session high. Initial technical resistance above at 111-21 (20-day EMA).
  • Muted react to Cleveland Fed Mester economic outlook comments: "POLICY IS IN A GOOD PLACE, MISTAKE TO CUT RATE TOO SOON .. CAN'T COUNT AS MUCH ON SUPPLY SIDE TO LOWER INFLATION" in-line with Chairman Powell comments.
  • Up next: MN Fed Kashkari (moderated Q&A, livestreamed) at 1300ET, Boston Fed Collins open remarks labor conf (livestreamed, no Q&A) at 1400ET and Philly Fed Harker on Fed role in the economy (text, Q&A) at 1900ET.
  • Treasury supply ($80B 42D CMB bills at 1130ET, $54B 3Y Notes at 1300ET).

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