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Tsys Futures Tick Higher, Curve Steepens

US TSYS
  • Treasury futures continue to edge higher and are now trading nears session's best, volumes are above recent averages with TUU4 at + 01⅝, while TYU4 is + 05 at 113-03+.
  • Cash treasury curves are bull-steepening today, yields are 1-3bps lower, short-end outperforming although it did underperform overnight. The 2yr is -3bps at 4.062%, while the 10yr is -1.7bp at 3.896%.
  • Projected rate cuts through year end have moderated vs. Thursday's pre-data levels (*): Sep'24 cumulative -33.5bp (-35.2bp), Nov'24 cumulative -62.4bp (-69.6bp), Dec'24 -95.3bp (-104.1bp).

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