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Post-PPI React: Tsys Gap Higher

US TSY FUTURES
  • Tsy futures gap higher, trims half the move after in-line to slightly lower PPI measures for November: Final Demand MoM (0.0% vs. 0.0% est, -0.4% prior revised from -0.5%), YoY (0.9% vs. 1.0% est, 1.2% prior revised from 1.3).
  • Futures back to pre-NFP levels with TYH4 tapping 110-31 high (10YY 4.1489% low) before slipping back to 110-24 (+6.5). Curves mixed: 3M10Y -4.693 at -124.337, 2Y10Y +.076 at -53.155).
  • Inside recent ranges, TYH4 initial technical resistance at 111-09+ (High Dec 7 and bull trigger) vs. support at 109-27+ (20-day EMA).

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