Weaker Amid Global Fixed Income Sell-Off

US Treasury futures sit at 107-26, +02 for TYM4 in early Thursday dealings. We may be seeing some modest support from the equity side, with US futures down sharply following disappointment from tech bellwether Meta. Still, we hold close to session lows from Wednesday (107-20), amid broader fixed income pressures through yesterday's session.

• Wednesday's US session saw Tuesday's Tsy rally unwound (post the PMI miss), amid global fixed income pressures. EGBs lead on the open with BTP, Bund and Gilt yields supported after Bund supply and higher than expected Australia CPI.
• US data was close to expectations, albeit with some downward revisions, which caused some brief short covering, but there was no follow through: Durable Goods Orders (2.6% vs 2.5% est; prior down-revised to 0.7% from 1.3%), Cap Goods Orders Nondef Ex Air (0.2% vs 0.2% est, prior down revised to 0.4% from 0.7%.).
• The 10Y yield climbed to a 4.6686% high (closed at 4.642%). 2s10s curve bear steepened to -285, steepest level since early February/late January.
• Thursday Data Calendar: Wkly Claims, GDP, Core PCE Index.