Yields Trend Higher Ahead of CPI Revisions

TYH4 is currently trading at 110-26+, - 02+ from New York closing levels.

Treasury futures traded lower post the Asian session on Thursday and continued that trend following Initial jobless claims data of seasonally adjusted 218k (cons 220k) in the week to Feb 3 after last week’s surprise increase was revised a little higher to 227k (initial 224k).

• Mar'24 10Y futures bounced to 110-31.5 after the strong $25B 30Y auction, stopped through for the third consecutive time: 4.360% high yield vs. 4.380% WI. But quickly reversed the move to hit a low of 110-23.5, nears initial technical support of 110-22+ (Low Feb 5 and the bear trigger, followed by 110-16 Low Dec 13)
• Cash yields were higher during the US session, 2Y yield was 2.5bps higher at 4.454%, while the 10Y yield was 4.8bps higher at 4.154%, 2y10y +0.8 at -29.8
• Fed speak: the Federal Reserve has time to wait before cutting interest rates as the economy remains strong even as inflation falls, Richmond Fed President Thomas Barkin said Thursday. “You don’t have to be in any particular hurry. We’ve got some time to be patient,” Barkin said in an interview with Bloomberg TV.
• Friday Data Calendar: CPI Revisions