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Treasury Futures Edge Higher, Fed's Bullard Says 3 Cuts Is Base Case

US TSYS
  • Jun'24 10Y futures have edged slightly higher over the day, earlier there looked to be a TU-TY flattener block trade, which has helped support the long end. 10Y futures are + 02+ at 109-11, just off highs of 109-13, while the front-end lags a touch up just + 00⅛ at 101-29 from highs at 101-29-⅝
  • Cash Treasury curve flattened on Tuesday, with yields flat to 1bp lower, the 2Y yield -0.2bp at 4.786%, 10Y -1bp to 4.410%.
  • (Bloomberg) - Bullard Says Three Interest Rate Cuts This Year Is Base Case (see link)
  • Kashkari headlines: "LABOR MARKET NO LONGER `RED HOT' BUT STILL TIGHT" & "BASE CASE IS INFLATION WILL CONTINUE TO FALL"
  • Looking Ahead: slow start to the week with focus turning to CPI and March FOMC minutes on Wednesday, PPI on Thursday.

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