Market Roundup: 2YY Tops 4% First Time Since Oct 2007

Tsy futures trading narrowly mixed, curves flatter (2s10s -3.599 at -44.153) with 10s-30s firmer, short end weaker w/2YY breaching 4.0% to 4.0058% first time since Oct 2007. Smaller than expected August existing home sale -0.4% decline to 4.80M, helped buoyed 2Y yields as pace slowed abruptly from the -5.7% in July and an average monthly decline of almost -5% through 1H22.

• Decent overall volumes (TYZ2>680k) for an inside range in lead-up to today's FOMC policy and SEP annc at 1400ET, Fed Chairman Powell presser at 1430ET.
• Technicals for Dec 10Y futures currently at 113-27.5 (+.5): Importantly for bears, price has breached key support at 114-06, the Jun 14 low. This confirms a resumption of the broader downtrend and strengthens the underlying bearish condition. The 114.00 handle has been cleared, the focus is on 113-19, the Jun 19 2009 low (cont). Initial firm resistance is at 115-29+, the 20-day EMA.
• FI markets drew risk-off support overnight after Russian Pres Putin announced ‘partial’ military mobilization of reserve forces, including threat of nuclear weapons against Ukraine, underscoring potential for war to continue through winter.
• Current cross-asset levels: Stocks little firmer: SPX futures ESZ2 off midmorning highs at 3890.75 (+18.0), Crude weaker/near lows (WTI at 83.39, -.55) Gold firmer at 1667.35 +2.46.