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Tsys Futures Edge Lower, Fed Speaker Tonight As Blackout Ends

US TSYS
  • Treasury futures are a touch lower this morning although still trades near the overnight highs. TUU4 is -0-01 at 102-08⅜, while TYU4 is -0-02 at 110-21, later today we have Cleveland Fed President Loretta Mester and Chicago Fed President Austan Goolsbee speaking.
  • Cash treasury yields are flat to 0.5bp higher, with the 2Y +0.3bp to 4.700%, 7Y unchanged at 4.235%, while the 10Y is +0.2bp at 4.246%
  • Focus in the region will be on the BoJ a bit later with Japanese bond futures rising 10 ticks this morning. Economists expect the central bank to maintain its interest rate and potentially slow its bond buying pace.
  • APAC rates: ACGB yields are 5-5.5bps lower, while NZGB yields are 4-6bps lower.
  • Barclays are shorting the 10-year US Treasury bond with an entry at 4.24%, anticipating a rebound in US economic activity and higher rates. They also shifted to a neutral stance after profiting from the yield difference between 5- and 30-year Treasury bonds, having seen significant steepening.
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  • Treasury futures are a touch lower this morning although still trades near the overnight highs. TUU4 is -0-01 at 102-08⅜, while TYU4 is -0-02 at 110-21, later today we have Cleveland Fed President Loretta Mester and Chicago Fed President Austan Goolsbee speaking.
  • Cash treasury yields are flat to 0.5bp higher, with the 2Y +0.3bp to 4.700%, 7Y unchanged at 4.235%, while the 10Y is +0.2bp at 4.246%
  • Focus in the region will be on the BoJ a bit later with Japanese bond futures rising 10 ticks this morning. Economists expect the central bank to maintain its interest rate and potentially slow its bond buying pace.
  • APAC rates: ACGB yields are 5-5.5bps lower, while NZGB yields are 4-6bps lower.
  • Barclays are shorting the 10-year US Treasury bond with an entry at 4.24%, anticipating a rebound in US economic activity and higher rates. They also shifted to a neutral stance after profiting from the yield difference between 5- and 30-year Treasury bonds, having seen significant steepening.