Treasury Futures Head Lower Post PMI

Treasury futures look to finish mixed Thursday with 2s-10s weaker, curves unwinding a good portion of the post FOMC steepening as today's data tempered post-FOMC rate cut projections.

• Jun'24 10y futures climbed higher heading into S&P Global PMI, making highs of 110-26+, before gapping lower and touching a low of 110-08+. As trading gets underway in Asia, futures are off late US lows and trade at 110-13+
• Looking at technical levels: Initial support lays at 109-24+ (Mar 18 low/ the bear trigger), further down 109-14+ (Nov 28 low), while to the upside initial resistance is seen at 110-26+ (Mar 21 high), while above here 111-01+ (50-day EMA), a break above here would open a retest of 111-24 (Mar 12 high).
• Treasury curves bear flattened on Thursday, yields were -1bp to +4bps. The 2y was +3.4bp at 4.637%, the 10y was -0.6bp at 4.268, while the 2y10y was -3.983 at -37.146
• Overnight data: 4Q Current Account Balance -$194.8b vs -$209.0b expected from a revised -$196.4b in Q3 revised, Philadelphia Fed Business Outlook 3.2 vs -2.5 expected, Initial Jobless Claims 210k vs 213k expected, while US Composite PMI was 52.2 vs 52.2 expected, leading Index 0.1% vs -0.1% expected, while Existing Home Sales was 4.38m vs 3.95m expected
• Looking ahead: It's an empty calendar for Friday