Tsys Move higher, Ahead Of A Heavy Data Calendar Thursday

TYH4 is currently trading at 110-01+, + 01 from New York closing levels.

Treasury futures advanced during the US session, rebounding from new cycle lows established post US CPI, with Mar'24 10Y hitting a low of 109-16.5 and a yield of 4.3301%, levels not seen since early Dec'23

• Mar'24, 10Y futures moved higher during the US session, experiencing a brief dip after the BLS downwardly revised PPI data for Dec from -0.1% to -0.2%. The futures touched a low of 109-19+ before reversing course and reaching a high of 110-05, ultimately settling at 110-00.5 after the bell.
• Cash Yields recovered slightly from Tuesday's bear flattening move to trade 2-8bps lower. The 2Y yield is 8bps lower to 4.578%, 10Y yield is 5.9bps lower to 4.255% while the 2s10s are currently +3.100 at -31.459.
• Post the US Close, Fed's VC Barr discussed the economy and recent data, noting that January's data was stronger than expected. High-interest rates are dampening both sales and purchases of homes. However, he emphasized that the data is on a good path, but it is still too early to determine if there will be a soft landing.
• Looking ahead, Thursday brings a heavy data calendar with weekly Claims, Retail Sales, Imp/Exp$, IP/Cap-U, TIC Flows. Fed speak includes Fed Gov Waller on the US$ international role at 13:15 ET, and Atlanta Fed Bostic on monetary policy (text, Q&A) later in the evening at 19:00 ET.