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Extending Lows

US TSY FUTURES
  • Still off last Thursday's early lows, Tsy futures after extending this morning's lows, Dec'23 10Y tapped 107-16.5 (-17.5), 10YY up to 4.6475% high.
  • Initial technical support at 107-05, 1.382 Fibonacci projection of the Jul 18 - Aug 4 - Aug 10 price swing.
  • Short end curves bending steeper: 3M10Y +5.377 at -83.145, 2Y10Y +1.581 at -46.081.
  • No obvious headline driver, some additional quarter end positioning likely still in play, deal-tied hedging as well.

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