Treasuries Head Lower As Jobless Claims Drop

TYH4 is currently trading at 109-18, up + 02 from New York closing levels
On Thursday Treasury futures pushed lower heading into Jobless Claims and made new lows after weaker than expected data - Initial Jobless Claims (201k vs. 216k est) and Continuing Claims (1.862M vs. 1.885M est). Futures rebounded briefly following February flash PMI, which on balance were weaker than expected, signalling still-solid but slowing growth and potentially softer price pressures.

• Mar'24 10Y futures hit a low of 109-10 breaking through initial support of 109-17/16, before closing the session at 109-16+. Looking forward initial support now holds at 109-10 (low Feb 22) a break here opens a move to 109-05+ (lows Nov 28), to the upside initial resistance sits at 110-17+ (High Feb 15).
• Yields curves bear flatten on Thursday the 2Y yield closed +4.6bps higher at 4.712% (yearly Highs), 10Y yield +0.2bp at 4.321% while the 2s10s -4.367 at -39.319.
• Post the close a handful of Fed speakers will talk - Fed Governor Lisa Cook stated that despite the economy's two-sided risks and a bumpy path toward the 2% inflation goal, it's not yet time to reduce interest rates. Cook emphasized the need for greater confidence in inflation convergence before considering a policy rate cut. While Fed's Harker stated there is no rush to cut rates, actions will be driven by data however a May cut is possible, it’s not off the table but it is not currently forecast.
• Note Fed's Waller speaks in about an hour and a half on the economic outlook.
• There is nothing on the calendar for the day or Monday, while Tuesday New Home Sales and Dallas Fed Manf. Activity are due.