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Treasury Futures Test Friday Lows, 10Y Yield Nears Yearly Highs

US TSYS
  • Jun'24 10Y futures have retested Friday's lows of 109-31, we now trade just off those levels at 110-00+ down 02 from NY closing levels.
  • Looking at technical levels, initial support is 109-25+ (Feb 23 and the bear trigger), below here 109-14+ (Nov 28 low). While to the upside, initial resistance is 110-30+ (Mar 14 high) above here 111-03+( 50-day EMA).
  • Cash yields were -0.5 to +5bps with the curve flatter on Friday, as cash trading gets underway for the week curves are slightly steeper with yields flat to 1bps higher across the curve. The 2Y is +0.4bp to 4.732%, 10Y +0.8bp to 4.314%, while the 2y10y is -0.069 to -42.409
  • Looking ahead the US calendar is empty today, with Building Permits & Housing starts on Tuesday main focus this week will be on the FOMC on Thursday

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