Reply To: Traders Market Weekly: Half Year Rebalancing High Wire Act


U.S. Treasuries are on track for a firmly higher start.

Treasury futures began rising shortly after yesterday’s cash close, continuing their advance into the night. The market found some resistance at the start of the European session, but it reached fresh highs in recent trade, rising alongside other sovereign debt as concerns about growth return to the forefront.

France’s central bank lowered this year’s growth forecast for France to 2.3% from 3.4% while increasing the inflation forecast to 5.6% from 3.7%.
The latest inflation report from the U.K. showed that CPI was up 9.1% yr/yr in May, representing the sharpest rate of increase in 40 years.

The U.S. Treasury will hold a $14 bln 20-yr bond reopening at 13:00 ET
Fed Chairman Powell will testify before Congress today and tomorrow. Today’s appearance before the Senate Banking Committee will begin at 9:30 ET.

Yield Check:
2-yr: -10 bps to 3.12%
3-yr: -10 bps to 3.26%
5-yr: -10 bps to 3.28%
10-yr: -10 bps to 3.21%
30-yr: -9 bps to 3.30%