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Tsys Futures Edge Slightly Higher, TY Holds Above 20-Day EMA

US TSYS
  • Treasury futures have edged slightly higher this morning, volumes remain inline with averages. Overnight the TYU4 tested initial support at 110-22 (20-day EMA), we currently trade just above here at 110-23.
  • Tsys flows: Sellers of TY 109.5 puts, 0'18 x6000
  • The tsy curve has bull-steepened this morning with yields 0.5-1.5bps lower. The 2y is -1.4bps at 4.414%, while the 10y is -1.2bps at 4.272%
  • The 2s10s is the least inverted it has been all year, after rallying on the view that the fed will cut rates with the market now currently pricing in about 60bps of cuts into year-end

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