• Treasury futures are slightly lower today, although we are currently trading off the intraday lows, there has been increased activity in front-end futures, TU is trading -0-01⅛ at 102-15⅛, TY is -0-05+ at 110-31+.
  • Volumes are slightly above recent averages: TU 72k, FV 75k & TY 143k
  • Tsys flows: Block Seller TYQ4C at 0'16 x10k
  • The cash treasury curve is little changed this morning with the 10Y yield at 4.214%
  • OIS market is now pricing in a 90% chance of a rate cut in September, up from 67% prior to CPI.
  • Citi strategists are emphasizing the attractiveness of steepener trades heading into the US election, driven by dovish FOMC policies and weak June CPI data. They highlight that steepeners benefit from both a more accommodative Fed stance and election-related market dynamics, making them an exception among Trump trades, (per BBG)
  • Looking ahead, We have PPI, U. of Mich. Sentiment while Wells Fargo, Bank Of NY Mellon, JPM & Citigroup report earnings

US TSYS: Tsys Futures Off Earlier Lows, Volumes Increase In The Front-End

Last updated at:Jul-12 05:18By: Sam Hunter
  • Treasury futures are slightly lower today, although we are currently trading off the intraday lows, there has been increased activity in front-end futures, TU is trading -0-01⅛ at 102-15⅛, TY is -0-05+ at 110-31+.
  • Volumes are slightly above recent averages: TU 72k, FV 75k & TY 143k
  • Tsys flows: Block Seller TYQ4C at 0'16 x10k
  • The cash treasury curve is little changed this morning with the 10Y yield at 4.214%
  • OIS market is now pricing in a 90% chance of a rate cut in September, up from 67% prior to CPI.
  • Citi strategists are emphasizing the attractiveness of steepener trades heading into the US election, driven by dovish FOMC policies and weak June CPI data. They highlight that steepeners benefit from both a more accommodative Fed stance and election-related market dynamics, making them an exception among Trump trades, (per BBG)
  • Looking ahead, We have PPI, U. of Mich. Sentiment while Wells Fargo, Bank Of NY Mellon, JPM & Citigroup report earnings

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