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US TSYS: Tsys Curve Bear-Steepens Ahead Of PPI & Powell

US TSYS
USGlobalBulletMarketsFixed Income BulletsRegionNorth America
  • Short-end tsys yields are edging higher and now trade at session highs, with investors cautious ahead of Jerome Powell's speech on the economic outlook later. The curve has bear-flattened with the 2yr is +3.4bps at 4.32% still within the weekly highs made overnight of 4.367%, the 10yr is +2.4bps at 4.475% and now trading at May 31 highs.
  • Tsys futures are lower although the short-end still trades with yesterday's ranges with TU -02½ at 102-20⅛, while TY is -06+ at 109-07, and has broken below yesterday's lows.
  • The 10yr yield has now climbed 88bps since the September lows of 3.60%
  • The 2s10s curve has flattened at touch to 15.355bps after reaching a high of 17.6bps overnight, while the 2s30s is last -1.3bps at 33.2bps although trades 18bps off Nov 12 lows.
  • Short end rates outperformed as projected rate cuts into early 2025 gained vs. early Wednesday levels (*) : Dec'24 cumulative -20.8bp (-15.5bp), Jan'25 -27.7bp (-23.0bp), Mar'25 -41bp (-35.1bp), May'25 -57.6bp (-41.3bp).
  • Investors will be watching a host of speeches from Fed officials later including Jerome Powell, Alberto Musalem, Thomas Barkin and Adriana Kugler.
  • Focus turns to PPI & Jobless claims later today
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  • Short-end tsys yields are edging higher and now trade at session highs, with investors cautious ahead of Jerome Powell's speech on the economic outlook later. The curve has bear-flattened with the 2yr is +3.4bps at 4.32% still within the weekly highs made overnight of 4.367%, the 10yr is +2.4bps at 4.475% and now trading at May 31 highs.
  • Tsys futures are lower although the short-end still trades with yesterday's ranges with TU -02½ at 102-20⅛, while TY is -06+ at 109-07, and has broken below yesterday's lows.
  • The 10yr yield has now climbed 88bps since the September lows of 3.60%
  • The 2s10s curve has flattened at touch to 15.355bps after reaching a high of 17.6bps overnight, while the 2s30s is last -1.3bps at 33.2bps although trades 18bps off Nov 12 lows.
  • Short end rates outperformed as projected rate cuts into early 2025 gained vs. early Wednesday levels (*) : Dec'24 cumulative -20.8bp (-15.5bp), Jan'25 -27.7bp (-23.0bp), Mar'25 -41bp (-35.1bp), May'25 -57.6bp (-41.3bp).
  • Investors will be watching a host of speeches from Fed officials later including Jerome Powell, Alberto Musalem, Thomas Barkin and Adriana Kugler.
  • Focus turns to PPI & Jobless claims later today