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Futures Gap Off Lows

US TSY FUTURES
  • No visible means of support: Treasury futures gap off lows in the last few minutes, no obvious headline driver or Block/cross to point to, though Gilts/Bunds see similar bounce off lows.
  • Front month Sep'23 10Y futures at 109-29.5 +5, yield slips back to 4.2052% from 4.2327% high this morning. In the event 10Y futures continue to bounce off Tuesday's contract lows (109-11.5) initial technical resistance is: 110-10/111-02+ High Aug 14 / 20-day EMA.
  • Curves have scaled back from steeper levels but the short end continues to outperform: 2Y10Y +2.406 at -72.353.

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