Treasuries Open Steady, Just Off Yearly Lows Ahead of GDP & PCE Data

TYH4 is currently trading at 109-18, up + 01 from New York closing levels

Treasury futures are opening just above Tuesday lows and in line with closing levels, after briefly posting gains during the US session on decent $42B 7Y note auction, while yield curves steepened on Tuesday.

• Mar'24 10Y futures traded in a tight range on Tuesday at 109-28 high vs 109-15 low. The trend direction in Treasuries is unchanged and remains down with the contract trading closer to its recent lows. Price has pierced 109-17, 50.0% of the Oct - Dec bull cycle. A clear break of this retracement would strengthen the bearish condition and signal scope for an extension towards 108-19+, the 61.8% Fibonacci level. On the upside, initial firm resistance is seen at 110-24+, the 50-day EMA.
• Tuesday saw lower than expected Durable Goods Orders (-6.1% vs. -5.0% est), FHFA house prices increased by less than expected in Dec, 0.1% M/M (cons 0.3) after 0.31% M/M while Conf. Board consumer confidence saw a sizeable miss in February, falling to 106.7 (cons 115.0) after a downward revised 110.9 (initial 114.8).
• Looking ahead, Wednesday data calendar includes GDP, PCE, Wholesale/Retail Inv, Fed Speak.