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Treasuries Slide After Fed's Bostic Comments

US TSYS

TYH4 is currently trading at 110-02+, down -03+ from New York closing levels.

Treasuries have started to move lower, testing the lows from the US session on Thursday the move maybe being aided by Atlanta Fed Bostic's comments, after he mentioned there is no rush to cut rates, but sees two rate cuts this year.

  • Mar'24, 10Y futures have started to drift lower testing lows from the US session of 110-01, currently just above there at 110-02, while Mar'24 2Y futures have broken through US session lows to trade at 102-01⅝.
  • Key technical levels to watch include initial support at 109-17/16+ (50.0% of the Oct 19 - Dec 27 bull phase/Low Feb 14), a break below here could open up new yearly lows and a test of 109-05+ (lows of Nov 28). To the upside, initial resistance lies at 110-17.5 (the highs from Feb 15th), while a break above opens up a move to 111-02+ (20-day EMA).
  • Cash yields are 1-3bps higher across the curve, the 2Y yield +1.7bp higher at 4.591%, 10Y yield +2.3bps higher at 4.253%.

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