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Post-Factory Orders React

US TSY FUTURES
  • Still well bid, Tsy futures scale back support after Factory Orders (2.8% vs. 2.3% est, 1.0% prior rev), Ex Trans (0.8% vs. 0.8% est, 1.5% prior rev), Durable Goods near in-line (4.6% vs 4.7% est), Ex Trans (0.4% vs. 0.5% est). Cap Goods Orders/ship slightly lower than expected at 0.4% and 0.5% respectively.
  • Dec'23 10Y currently trading 107-17.5 (+22) vs. 107-28 high (breach of initial technical resistance of 107-22+ (High Oct 16), next level at 108-02 (50-day EMA)
  • 10Y yield currently at 4.6715% vs. 4.6237% low. Curves remain flatter, 3M10Y -4.608 at -78.133, 2Y10Y -7.489 at -28.653.

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