Regaining Some Poise As European Peers Firm

TY futures last sit -0-00+ at 112-10+ around the middle of their 0-09 range, sticking within the upper end of yesterday’s range thus far. Volume in the contract runs at a healthy ~238K lots,

• Cash Tsy yields run flat to 2bp lower on the day, as the curve sees a light bull steepening move.
• European cash bond catch up/extensions surrounding overnight news flow/market moves (covered in detail earlier) provides support for Tsys in early London trade, allowing Tsys to regain poise after a shallow pullback from best levels.
• Negative revisions to UK GDP data and some focus on late Thursday comments from ECB President Lagarde are also touted as supportive factors in some quarters.
• FOMC-dated OIS shows ~153bp of cuts through ’24, a little above yesterday’s late dovish extremes.
• U.S. PPI data will be eyed for readthrough into PCE (expectations currently look for a more dovish PCE print vs. what was seen in yesterday’s CPI release).
• Comments from Minneapolis Fed President Kashkari (non-voter in ’24) are also due in NY hours.