Treasury Yields Lower, Remain Rangebound Ahead of US Data

TYH4 is currently trading at 109-22+, up - 02 + from New York closing levels

Treasury futures have traded in a tight range today, currently just off daily highs as we head into the Asia lunch break, while yields are 1-3bps lower in yield terms.

• Mar'24 10Y futures are trading in tight range today, currently 109-22+ sitting just below daily highs of 109-24, while daily lows are 109-18+. Initial technical support holds at 109-17/16+ (50.0% of Oct 19 - Dec 27 climb / Low Feb 14), a break here will open up 109-05+ Low Nov 28, while to the upside initial technical resistance sits at 110-17.5 (Feb 15 high).
• Yield curves are slightly steeper, curve trades 1-2bps lower in yield terms. Currently the 2Y yield is -2.1bps lower at 4.645%, 10Y yield is -1.4bp lower at 4.305%, while the 2s10s +0.759 at -34.193.
• Biden stated earlier that he would support a 28% minimum tax for corporations.
• WSJ's Nick Timiraos was out earlier today writing about the Fed minutes where he mentioned that Federal Reserve officials, in the January meeting, expressed concerns about cutting interest rates too quickly and allowing inflation pressures to persist. Despite prior expectations of rate cuts, economic data showing job growth and higher-than-expected inflation has shifted the outlook, with the Fed now more cautious about immediate rate reductions. (WSJ)
• Looking ahead: Chicago Fed Nat Activity Index, Jobless Claims, S&P Global US PMI & Existing Home Sales