Reply To: Traders Market Weekly: Consumers Along for The Ride


U.S. Treasuries are on track for a higher start with longer tenors expected to pace the early advance after showing relative weakness yesterday. Treasury futures inched higher last evening, accelerating to highs shortly after the start of the Asian session. The rally followed reports of shelling in the Donbass region of Eastern Ukraine, which has weighed on sentiment even though this region has been a conflict area since 2014.

The overnight spike was followed by a steady pullback that erased the bulk of last night’s advance, though Treasuries remain on course for a firmly higher start. Japan reported its widest trade deficit in eight years and raised its machine orders assessment to indicate that orders are picking up. The U.S. session will feature January Housing Starts/Building permits, which will be reported alongside the weekly jobless claims report. The U.S. Dollar Index is up 0.1% at 95.76.

Yield Check:
2-yr: -1 bp to 1.51%
3-yr: -3 bps to 1.74%
5-yr: -3 bps to 1.89%
10-yr: -4 bps to 2.01%
30-yr: -5 bps to 2.32%