Reply To: Bond Traders Weekly Outlook: U.S. Treasuries Backed Off September Highs on Optimistic Chatter


U.S. Treasuries lower start with shorter tenors relative weakness in the early going.

Treasury futures began slipping after yesterday’s cash close, continuing their retreat into the night.

The overnight session was mostly subdued, Japan’s core CPI was up 4.0% yr/yr in December, representing the sharpest rate of increase since 1982, but Bank of Japan Governor Kuroda repeated that the central bank plans to maintain its ultra-loose policy.

In Europe, the U.K. recorded its sharpest drop in retail sales for the month of December since the series began in 1989. Crude oil is holding above its 50-day moving average (78.74) while the U.S. Dollar Index is up 0.3% at 102.39.

2-yr: +4 bps to 4.16%
3-yr: +4 bps to 3.80%
5-yr: +3 bps to 3.52%
10-yr: +3 bps to 3.43%
30-yr: +2 bps to 3.59%