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Rates Reverse Course

US TSY FUTURES
  • This morning's support in Treasury futures has evaporated in the last few minutes, 2s through 10s mildly weaker now, but off early overnight lows (TYU3 -3.5 at 108-31 vs. 108-28 low). Curves well off late overnight lows: 3M10Y at -110.534 vs. -119.089 low, 2Y10Y +.118 at -66.574 vs. -69.064 low.
  • No particular headline or block/cross driver for the move, but desks have noted accts anticipating a hawkish tone from Fed Chairman Powell at the economic summit in Jackson Hole that informally kicks off Thursday evening and runs through Saturday.
  • Volumes are picking up, however, TYU3>500k as Sep'23/Dec'23 rolling gains momentum.

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