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Treasuries Slowly Unwinding Overnight Risk-Off Rally

US TSYS
  • Cash Tsys have spent much of the morning unwinding an overnight rally led by risk-off flows on a deteriorating geopolitical outlook. Yields remain lower on the day with a modest bull flattening.
  • 2Y yields are -0.1bps at 1.024%, 5Y -0.6bps at 1.580%, 10Y -1.4bps at 1.790% and 30Y -1.3bps at 2.104%.
  • TYH2 sits near highs for the week at 128-02 (peak of 128-10 overnight) with a resumption of strong volumes. Key-short term resistance is seen at 128-27 (Jan 13 high) whilst support is 127-02 (Jan 19 low).
  • Data: Limited to the Leading index for Dec (1000ET).
  • NY Fed buy-op: Tsy 0Y-2.25Y, appr $12.425B vs. $9.325B prior (1030ET).

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