Treasury Futures Weaker/Narrow Range Ahead Of Powell Later This Week

Treasury Futures had an uneventful Monday trading session with little in the way of any market headlines and no economic data out. Treasuries gave back a portion of Friday's rally amid cautious trade ahead Fed Chairman Powell's policy testimony to Congress Wed-Thu, Jobs report Friday.

• Jun'24 10Y futures hit a high of 111-00+ on the open before grinding to a daily low of 110-21, we are just off those levels as trading in Asia gets started at 110-24.
• Looking at technicals, the trend remains down with the bear trigger at 110-05+/109-25+ (Low Mar 1 / Low Feb 23), a break here would resume the downtrend and open 109-14+ (Nov 28 low) While to the upside a break of 111-01/111-02 High (Mar 4 / Feb 1) is needed in order to test 111-06+ (50-day EMA) which could signal a trend reversal.
• Treasury Yields were flatter on Monday with yields 2-7bps higher across the curve, the 2Y was 7bps higher at 4.602%, 10Y +3.3bps higher at 4.213%, while the 2y10y was -3.925 at -39.078.
• Atlanta Federal Reserve President Raphael Bostic said his base case remains for two rate cuts this year, likely starting in the third quarter, and does not anticipate reductions at back-to-back meetings, adding he would like quantitative tightening to continue at the current pace for as long as possible.
• Looking ahead: S&P Final PMIs, ISM Services & Factory Orders out later today.