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Futures Steady As Markets Await PCE

US TSYS

It has been a very muted session for US Tsys. TYM4 sits at 107-25, +01+ in recent dealings, having stuck to ranges from late NY trade on Wednesday in Asia Pac today. Highs were at 107-27, lows 107-23+.

  • We haven't seen much spill over from the sharp fall in US equity futures, apart from a modest rise at the open. Volumes in Tsy futures have been less than 50k so far today. AU and NZ markets are out, which has likely lightened volumes/interest to a degree.
  • In the cash Tsy yield space, we are firmer, but gains are under 1bps at this stage. The 10yr last near 4.645%. The 2/10s curve is near -29bps, the steepest levels since early Fed/late Jan.
  • Looking ahead, we have Wkly Claims, GDP, Core PCE Index in focus.

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