November 01, 2023 18:47 GMT
Tsys Pare Gains, Fed Attentive to Long Term Yields
US TSY FUTURES
- Still bid, Tsy futures scaling off session highs as Powell notes "expectation of higher near-term policy rates is causing the increase in longer-term rates."
- Chairman Powell stressed the "most important thing is that these higher Treasury yields are showing through the higher borrowing costs for households and businesses and they will weigh on economic activity to the extent that tightening persists and the mind's eye goes to the 8%, near 8% mortgage rate, which could have pretty significant effect on housing."
- Dec'23 10Y currently trading 106-23.5 (106-29.5 high). 10Y yield at 4.8014% -.1293. Curves flatter but off lows: 3M10Y -12.115 at -66.582, 2Y10Y -3.134 at -19.214.