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Tsys Futures Edge Lower, Curve Continues To Steepen

US TSYS
  • Treasury futures are little changed in the front end but continue to sell-off out the curve. TUU4 is -0-01⅞ at 102-01⅝ while TYU4 is down -0-12+ at 109-19 just off morning lows and comfortably below initial support at 109-26+.
  • Cash treasury curve has continued it' bear-steepening move with the 2Y -0.8bps at 4.745%, 5Y +0.2bps at 4.378% while the 10Y is +0.8bps at 4.404%, the 2y10y continues to trade off recent ytd lows and is now -1.619 at -34.237 back at early may levels, vs -50bps only three sessions ago.
  • In the APAC markets this morning, JGBs yields are higher through the belly after strong tankan data, ACGB yields are 6-12bps higher, French bond futures have ticked higher after the first round of voting.

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