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US TSYS: Tsys Futures Edge Lower, BofA's CEO See's 50bps Of Cuts This Year

US TSYS
USGlobalBulletMarketsFixed Income BulletsRegionNorth America
  • US Tsys futures have continued the move lower that occurred during the US session on Tuesday, with TU, FV & TY contracts trading below Tuesday's lows. TU is -01⅜ at 103-06⅜, while TY is -05+ at 111-05+ and now trades just above initial support at 111-00 (July 22 lows), moving average studies are in a bear-mode position, highlighting a dominant downtrend for now. Initial firm resistance has been defined at 112-22 (Oct 16 high).
  • Volumes are well down on Tuesday's levels, while the only notable trade has been a SOFR strip block, DV01 $2.2m.
  • It has been a relatively quiet session across Asia rates, although the 40yr JGB hit its highest levels since 2008.
  • Cash tsys curve has seen a slight bear-flattening move, yields are 2-2.5bps higher. The 2yr is +2.2bps at 4.054% the highest since Aug 19th, while the 10yr is +2bps at 4.228%, the highest since July 25th.
  • Earlier, BofA's Brian Moynihan urged the Fed to take a measured approach to cutting interest rates, warning of risks if the reductions are too rapid. He expects a further 50bps in cuts by year-end and four more in 2025, with inflation potentially dropping to 2.3% by 2026.
  • Fed fund futures are pricing in 41bps of cuts by year-end, or about a 72% of 50bps of cuts.
  • Today, we have MBA Mortgage Applications, followed by existing Home sales & the Federal Reserve Releases Beige Book
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  • US Tsys futures have continued the move lower that occurred during the US session on Tuesday, with TU, FV & TY contracts trading below Tuesday's lows. TU is -01⅜ at 103-06⅜, while TY is -05+ at 111-05+ and now trades just above initial support at 111-00 (July 22 lows), moving average studies are in a bear-mode position, highlighting a dominant downtrend for now. Initial firm resistance has been defined at 112-22 (Oct 16 high).
  • Volumes are well down on Tuesday's levels, while the only notable trade has been a SOFR strip block, DV01 $2.2m.
  • It has been a relatively quiet session across Asia rates, although the 40yr JGB hit its highest levels since 2008.
  • Cash tsys curve has seen a slight bear-flattening move, yields are 2-2.5bps higher. The 2yr is +2.2bps at 4.054% the highest since Aug 19th, while the 10yr is +2bps at 4.228%, the highest since July 25th.
  • Earlier, BofA's Brian Moynihan urged the Fed to take a measured approach to cutting interest rates, warning of risks if the reductions are too rapid. He expects a further 50bps in cuts by year-end and four more in 2025, with inflation potentially dropping to 2.3% by 2026.
  • Fed fund futures are pricing in 41bps of cuts by year-end, or about a 72% of 50bps of cuts.
  • Today, we have MBA Mortgage Applications, followed by existing Home sales & the Federal Reserve Releases Beige Book