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US TSYS: Tsys Futures Steady, 10yr Hovers Near 4.50%

US TSYS
USBulletMarketsFixed Income BulletsNorth America
  • Tsys futures are trading little changed today, ranges are narrow while volumes are slightly below average. TU is +00¼ at 102-22¾, while TY is trading +00 + at 108-31+.
  • Cash tsys are trading +/- 0.5bps, curve slightly flatter. The 10yr hovers just above the 4.50% level at 4.52%.
  • Traders are betting yields will continue to rise, taking at look at TLT (iShares 20+yr Treasury Bond) Etf, investors withdrew a net $1.55b from it in the last session for which data is available, reducing the fund's assets by 2.9% to $51.1b, the lowest level since June 21. This was the biggest one-day decrease in at least a year. The most active option for the Jan 15 expiry is the 85 put, we last trade at 88.31.
  • In Treasury options on friday, flows included A large options trade targeting a rise in US 10yr Treasury yields to around 5.4% by January 24 saw 50,000 February 103.00 puts bought for approximately $1.5m. This appears to be new risk, given the low prior open interest of 7,036 contracts at this strike. While in SOFR futures stand out flows included a large block sale in the Dec25 futures over the US morning session
  • Later today we have durable goods orders and new home sale

 

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  • Tsys futures are trading little changed today, ranges are narrow while volumes are slightly below average. TU is +00¼ at 102-22¾, while TY is trading +00 + at 108-31+.
  • Cash tsys are trading +/- 0.5bps, curve slightly flatter. The 10yr hovers just above the 4.50% level at 4.52%.
  • Traders are betting yields will continue to rise, taking at look at TLT (iShares 20+yr Treasury Bond) Etf, investors withdrew a net $1.55b from it in the last session for which data is available, reducing the fund's assets by 2.9% to $51.1b, the lowest level since June 21. This was the biggest one-day decrease in at least a year. The most active option for the Jan 15 expiry is the 85 put, we last trade at 88.31.
  • In Treasury options on friday, flows included A large options trade targeting a rise in US 10yr Treasury yields to around 5.4% by January 24 saw 50,000 February 103.00 puts bought for approximately $1.5m. This appears to be new risk, given the low prior open interest of 7,036 contracts at this strike. While in SOFR futures stand out flows included a large block sale in the Dec25 futures over the US morning session
  • Later today we have durable goods orders and new home sale