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Treasury Futures Slightly Higher On Low Volumes

US TSYS
  • Jun'24 10Y futures are having a similar start to Asia trading today as they did on Tuesday, very little volume trading and tight ranges. The 10Y hits earlier lows of 111-06, before ticking up slightly to the highs of 111-08+ where is trades now.
  • Looking at technicals, initial supports holds at 111-03+ (20-day EMA), below there 110-21 (Mar 4 low), to the upside, initial resistance is 112-04+ (Mar 8 highs) while above is 112-10+ (61.8% retracement of the Feb 1 - 23 bear leg)
  • Cash yields were 3-5bps higher on Tuesday, and as trading gets underway in Asia curves are slightly flatter, with the 2Y -0.4bp to 4.582%, 10Y -0.8bp to 4.143%, while the 2y10y is -0.165 at -44.120, after briefly making new YTW lows on Tuesday touching -48.635.
  • Looking ahead: Mortgage Applications and a Treasury bond sales the main focus is on Thursday's Retail Sales and PPI data.

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