Market Roundup

US FI markets trading weaker across the board but off lows around the Asia/London cross (30YY hit 2.2457% high, 2.235% last, +.0204; 10YY 1.9559% high, 1.9396% last, +.0237). Heavy volumes, TYH2 over 530k.

• Risk assets softer: Equities mildly weaker (ESH2 at 4467.0), Gold -1.60, WTI crude -1.55. US$ index DXY gaining .166 at 95.565.
• Yield curves mildly flatter for most part, 2s10s bucking move +.272 at 62.42 vs. 60.44 overnight low.
• Technicals: TYH2 at 126-21.5 (-7.5) -- above first support/intraday low of 126-15.5. Next support: 126-10+ 61.8% retracement of the 2018 - 2020 bull cycle.
  
  • Recent weakness has resulted in a break of 127-02, Jan 19 low and a bear trigger. The move lower has also confirmed a resumption of the downtrend and cleared the base of a recent triangle or pennant formation, reinforcing current bearish conditions.
• Flows: Heavier two-way volumes overnight w/ better selling from props and fast$ in short end, domestic and foreign real$ selling 10s and 30s. Supply hedging, pre-auction short sets ahead today's $50B 3Y note auction (91282CDZ1) and return of high-grade corporate issuance hedging as earnings cycle winds down.