Treasuries Steady After Weakest Retail Sales Since March 2023

TYH4 is currently trading at 110-07+, up + 01+ from New York closing levels.
Treasury futures drifted towards the lower end of a narrow session range from Thursday, there was small move higher post US Data earlier, but that move have all been erased as Asia opens.

• Mar'24, 10Y futures briefly pushed higher as data was released, breaching initial technical resistance at 110-16 (low Feb 9) briefly before retracing half the move after lower than expected Retail Sales MoM (-0.8% vs. -0.2% st, 0.6% prior). As the session progressed, futures made new session lows of 110-01+, before settling to close at 110-06+.
• Cash Tsys mirrored similar bull-flattening moves in EGBs while off highs following wait-and-see tones from ECB Lagarde, who aims to avoid any "hasty" decisions to cut rates, with more evidence of inflation decline needed. The 2Y yield finished -0.4bp lower at 4.574%, 10Y yield 2.5bps lower at 4.23%, while the 2y10y is -2.2 to -34.609.
• Looking ahead: Friday data calendar includes PPI, House Starts/Build Permits, UoM Inflation