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Post-Bond Auction Update

US TSY FUTURES

Tsy futures gapped, curves extend bear steepening profile (2Y10Y +7.883 at -36.493) with the long end leading the sell off after the $24B 30Y auction performed poorly, tailing 5.2bp (4.769% high yield vs. 4.717% WI.

  • Currently, USZ3 trades 112-16 low (-210), TYZ3 trades 107-15.5 (-27).
  • Initial technical support for TYZ3 below at 107-08 (20-day EMA), followed by 105-27+/105-10+ (Low Nov 1 / Low Oct 19 and bear trigger)

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