Treasury Futures Push Higher Ahead Of Employment Data

Treasury futures climbed of lows from earlier in the US session to finished Thursday higher with real money account looking to position ahead of Fridays employment report.

• Jun'24 10Y futures touched lows of 111-11 during the Asian session Thursday before a brief rally made fresh highs of 111-24 as US data was released although the move was reversed. As trading gets underway in Asia we are opening a touch higher than NY closing levels at 111-22 up + 01.
• Futures briefly traded above initial resistance at 111-23 (Mar 6 highs) on Thursday, a break and hold above there opens 111-27 (50% retracement of the Feb 1 - 23 bear leg) further up 112-04 (Feb 7 highs), while to the downside 110-21 (Mar 4 lows) and 110-05+/109-25+ (Low Mar 1 / Low Feb 23 and bear trigger)
• Treasury curves steepened on Thursday with yields 1-6bps lower, the 2Y was 5.2bps lower at 4.501%, 10Y was -1.9bps lower at 4.083% while the 2y10y was +3.290 to -42.079
• US Data was out with lower than expected Unit Labor Costs (0.4% vs. 0.7% est). Weekly jobless claims largely in line: (216k vs. 217k est) while Continuing Claims rise (1.906M vs. 1.880M est; prior down-revised to 1.898M from 1.905M)). Additional data: Nonfarm Productivity (3.2% vs. 3.1% est); Trade Balance (-$67.4B vs. -$63.5B est).
• Looking ahead February Employment Report.