Market Roundup

US FI markets trading firmer across the board but off early London highs (30YY slipped to 2.2086% low, 2.2427% last, -.0144; 10YY 1.9143% low, 1.9361% last, -.0271). Heavy volumes again, TYH2 over 520k.

• Equities gaining/adding to Tue's late rally (ESH2 +42.25 at 4554.75), Gold +0.46, WTI crude +0.09 at 89.45. US$ index DXY weaker by -.237 at 95.406.
• Yield curves mixed, 2s10s flatter by -1.198 at 60.573 while 5s30s trading +1.111 steeper at 44.987.
• Technicals: TYH2 at 126-26 (+7.5) -- not far from first resistance of 127-01/24 High Feb 7 / High Feb 4. Next level 127-28/128-22+ 20-day EMA / High Jan 24.
  • Treasuries remain bearish, however. March 10Y contract has traded to a fresh cycle low today but has recovered from the session low. Recent weakness has resulted in a break of 127-02, Jan 19 low and a bear trigger. The move lower also confirmed a resumption of the downtrend and cleared the base of a recent continuation pattern, reinforcing bearish conditions. Upside attention is on 126-10+, a Fibonacci retracement. Initial firm resistance is at 127-24.
• Ebb and Flows: Heavier two-way volumes again overnight w/ better buying from prop, fast$ in 3s-10s, Supply hedging, pre-auction short sets ahead today's $37B 10Y note auction (91282CDY4) and renewed high-grade corporate issuance hedging as earnings cycle winds down.