US Cash Yields Grind Higher Continues

TYH4 is trading at 112-11+, + 01+ from NY closing levels.

Tsys futures have been drifting lower in Asia, as Cash yields trade 2.5-4.5bps higher

• Slightly better selling in the front end of the curve in Asia trading as the 2Y yield is 4.3bps higher at 4.250%, while the 10Y yield is 3.4bps higher at 3.948%.
• Firms are pushing back their forecast for Fed cuts. Goldman Sachs has pushed back its forecast for the 1st Fed cut to May from March. It still expects 5cuts this year (BBG), with Abrdn sees fed cutting rates three times this year (BBG). This may be lending support to today's moves.
• To recap, it was an active Data night for the US on Wednesday with lower than expected ADP Employment Change: 107k vs. 135k est, and as widely expected, the FOMC left the funds rate unchanged at 5.25%‑5.50%. Fed Chair Powell said he doesn't think the Fed will have the confidence to cut by the March meeting.
• TYH4 is still trading within initial resistance levels of 112-26+ from the highs of Jan 12th, while first support remains back at 110-26 from Jan 19th.
• Data Tonight: Weekly Claims, Flash PMIs, ISMs, followed by Non-Farm Payrolls on Friday