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Extending Lows

US TSY FUTURES
Tsy futures extended overnight lows, rebound slightly last few minutes, no headline driver as Mar'23 2Y futures (TUH3) tap yesterday's contract low of 101-23.75 (2YY 4.7244% high, 4.7223% last +.0249).
  • Selling may be positioning for a hot Jan PCE deflator at 0830ET, the Fed’s preferred price gauge. PCE Deflator MoM (0.1%, 0.5%); YoY (5.0%, 5.0%).
  • No obvious headline driver or block sale to explain sell-off in Tsys just before 0400ET.

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