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Tsys Futures Steady Ahead Of 2y & 5y Auctions

US TSYS
  • Treasury futures are little changed this morning, ranges have remained tight while volumes are likely related to rolls, later today we have $28B 2Y & $70B 5Y bond auctions.
  • TYU4 is -0-02+ at 113-19, while TUU4 is trading unch at 103-12⅜
  • A bullish theme in Treasuries remains intact and the contract continues to trade above support. Note that moving average studies are in a bull-mode position and this highlights bullish sentiment. Initial resistance is 114-03 (Aug 6 highs), with 114-16 (6.4% of the Aug 5 - 8 pullback) the next resistance, to the downside initial support is 113-03+ (20-day EMA) followed by 112-03 (50-day EMA).
  • Cash treasury curves are little changed with the 2y at 3.898%, while the 10yr is 3.82%

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