April 12, 2022 12:18 GMT
Tsys off late overnight lows -- extending highs ahead key inflation CPI measure for March (+1.2% est) at 0830ET. Consensus has headline CPI surging +1.2% M/M in Feb on sharp rises in energy (~12% M/M) and less so food (1% M/M).
- Yield curves scaling back small portion of steepening over last week (2s10s -2.299 at 25.138 vs. -9.561 inversion a week ago).
- Robust volumes ahead the NY open, TYM2>500k, amid central bank buying in 2s recently, noted block buy in 5s (+3,947 FVM2 113-03, buy through 113-02.25 post-time offer at 0726:37ET).
- Fresh cycle lows in June 10Y futures at 119-10.5 (-13.5) earlier vs. 119-28 (+4) last. Bear-trend extends: break lower confirms a resumption of the primary downtrend and maintains the bearish price sequence of lower lows and lower highs. Moving average studies still point south w/ next key support at 119-04+ (Dec 3 2018 low (cont)).
- Firmer June 30Y Bonds (USM2) 142-17 (+15) recent high vs. late O/N low of 141-06, 30YY currently at 2.7834 (+.0258) vs. 2.8555% high.
- Current cross asset: Oil bouncing, West Texas Crude (WTI) +$4.17 (4.42%) at $98.50; Gold adding to Mon's rally +$6.25 (0.32%) at $1959.73. Stocks firmer, SPX eminis +10.25 (0.23%) at 4419.25.