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Marking Session Lows

US TSY FUTURES
  • Treasury futures are extending modest session lows ahead midday, this after reversing gains following higher than anticipated flash PMIs for January.
  • Mar'24 10Y futures currently 111-05.5 (-1.5) vs. 111-02.5 low. Focus on initial technical support at 110-26 (Low Jan 19), followed by 110-16 (Low Dec 13).
  • While off early highs, curves still holding steeper profiles: 2s10s +2.965 at -21.634. 10Y yield running 4.1511% (+.0230) vs. 4.1588% high.
  • Pre-auction short sets ahead the $61B 5Y Note Auction at 1300, WI is currently 4.047%, 24.6bp cheap vs. last month's high yield stop.

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