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Tsys Future Steady, Busy US Data Session Ahead

US TSYS
  • Treasuries futures are little changed this morning, ranges are tight while volumes are inline with averages. TUU4 is -0-01⅛ at 102-01¾, while TYU4 is unchanged at 109-15.
  • The cash treasury curve is flat to 0.5bp lower.
  • Overnight, Powell indicated that recent inflation data, particularly from May, suggests a return towards lower inflationary pressures, emphasizing the need for sustained evidence of inflation nearing the Fed's 2% target before considering policy loosening, with no specific commitment to a rate cut in September. His remarks leaned slightly dovish, highlighting significant inflation progress while cautioning against premature policy adjustments.
  • APAC markets: are little changed, ACGB curve has steepened slightly with yields flat to 2bps higher, NZGB curve has moved tighter with yields 1.5bps lower while in Japan the JGBs are seeing selling pressure in the 20Y with yields +4bps higher at 1.925%.

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