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Treasuries See Late Rally To Keep Post FOMC Minutes Bid In Early Close

US TSYS
  • Cash Tsys rallied sharply into the early close on likely positioning into the weekend, retracing a large part of the intraday cheapening from a strong open, with the net result being most of the curve sitting 1.5-3bps richer from Wednesday’s post FOMC minutes close except for the very long end.
  • TYZ2 trades 113-02+ off a session low of 112-19+ but remains below initial resistance at yesterday’s high of 113-15, clearance of which is needed to see a resumption of the uptrend towards key resistance at $113-30 (Oct 4 high).
  • Fedspeak highlights Monday with NY Fed’s Williams with text and full Q&A plus an interview with Bullard, before Powell on Wed and payrolls on Fri. Fed Funds pricing sits at 53bp for the Dec 14 decision whilst the terminal in May/Jun’23 has fluctuated between 4.97-5.09% this week, latest 5.00%.

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