Tsys are trading higher as new lows in......>

US TSYS: Tsys are trading higher as new lows in Chinese stocks have triggered

renewed Asian equity weakness keeping upside pressure on the space. The 10-year

note has held intraday neckline support and is threatening to resume its bullish

trend. This comes even as USDJPY remains above yesterday's highs, with the two

markets continuing to decouple. 

- 2-year yields have found strong resistance at the 21-DMA which has shifted the

focus lower to Monday's lows. 

- Breakevens have also edged lower, trading at 2.095% as uptrend support form

the May 29 low in sight at 2.080%, just ahead of the 200-DMA. 

- The curve has resumed its steepening trend with the 30-year continuing to

underperform. 5s-30s has risen 0.7bps to 30.04bps. A bullish trend is emerging

at the back end of the yield curve. 

- T-note future trades at 120-07 

- Yields: 2Y: 2.616%, 5Y: 2.748%, 10Y: 2.880%, 30Y: 3.052%.