Pressure Extends

The weakness extends, with fresh cycle highs registered across the curve in yield terms, as the major benchmarks run 0.5-3.5bp cheaper. Note that 10-Year Tsy yields have printed above 4.25% for the first time since ’08 on the move.

• TYZ2 has printed a fresh cyclical low of 109-04+, with the cheapening accelerating on a break through Thursday’s base in the contract. The next level of meaningful technical support isn’t seen until 108-20, the 1.00 projection of the Oct 4-10-13 price swing.
• We haven’t seen an overt catalyst for the move, but the steepening on the JGB curve would have helped, with the same holding true for the block sales in TY futures, which were flagged earlier in the session.