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Treasury Futures Firmer Ahead of FOMC Minutes

TYH4 is currently trading at 109-29, down - 01 from New York closing levels
Treasury were given modest support on Tuesday following a larger than expected 25bp reduction in 5Y LPR during the Asia session and drew additional support after Canadian CPI data came out lower than expected (+2.9% vs. +3.2% est, +3.4% prior).
  • Mar'24 10Y Futures saw some weakness towards the end of the US session on Tuesday, closing off daily highs of 110-05 to be 109-30 as Asia logs in, we still sit below initial technical resistance at 110-17 (Feb 15 high), while technical support holds at 109-17/15 (50.0% of Oct 19 - Dec 27 climb / Low Feb 16).
  • Yield curves were steeper on Tuesday the 2Y yield close -2.9bps lower at 4.612%, 10Y yield -0.4bp lower at 4.275%, while the 2s10s +2.801 at -33.652 vs. -31.373 high
  • There was little in the way of reaction to US data, as Jan. Leading Indicator -0.4% M/M vs. -0.3% est, US Philly Fed Non-Mfg index -8.8 vs . -3.7 prior.
  • Looking ahead later today - MBA Mortgage Applications, FOMC meetings minutes, Chicago Fed Nat Activity Index, Jobless Claims, S&P Global US PMI, and New & Existing Home Sales

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