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Treasuries Little Changed Early

US TSYS
  • Treasury futures are little changed this morning, the 10Y contract is (+ 00+) at 109-01+, while the 2Y contract is (+ 00.25) at 101-19.375.
  • Volumes: TU 14k, FV 19k, TY 26k
  • Despite the latest pullback in Treasuries, the short-term trend condition remains bullish. Support now holds at 108-29 (20-day EMA), a break below here would see us look to test 108-15 (May 14 low), while to the upside initial resistance holds at 109-31+ (May 16 high/Bull trigger).
  • The treasury curve bear-flattened on Wednesday, we have opened little changed with the 2Y yield +0.2bp at 4.871%, 10Y +0.6bp to 4.428%.
  • Regionally: ACBGs flatter, yields are +2.5bps to -2.5bps, NZGBs flatter, yields 6-8bps higher, while JGB curve steeper, yields are +1bps to -0.5bp.

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