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Find Support Post Powell Interview

US TSYS

TYH4 is trading at 111-12, - 09 from NY closing levels.

Futures have found some support going into Asia lunch, with Mar'24 10Y futures testing new lows of 111-08 post Powell's 60 minute interview. He mentioned that there needs to be more disinflation evidence to cut rates. The CBS reporter stated that Powell suggested a mid-year cut, but this wasn't in the transcript of the interview.

  • Mar'24 10Y futures ended the week lower to close at 111-22, with a low of 111-16. We are now comfortably holding below here trading at 111-12 comfortably below the first technical support level from Friday of 111-16, while the next support at 110-26 Jan 19 a close below here would imply a bear trigger.
  • Earlier we saw buying in Mar'24 5Y futures, at 107-20.25, in 4,700 size, month lows are 107-16.75.
  • Cash yields curves opened 4-8bps higher, we are currently trading 3-6bps higher, with a slight flattening on the curve. the 2Y yield is 5.2bps higher at 4.416%, while the 10y is 4.4bps higher at 4.064%
  • Data Tonight: ISM Non-Manufacturing, PMI while Atlanta Fed's Raphael Bostic speaks.

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