The market is quiet but keep an eye out on Treasury yields
10-year yields are down 2.2 bps currently to 1.51% but the low today hit 1.50% earlier and that is a key level to watch from a technical perspective.
There hasn’t been much appetite for yields to move out of range per se since April (after failing to breach 1.75%) but we are seeing things start to get pinned closer to key levels with the 100-day moving average (red line) also resting nearby.
10-year breakevens have also retreated slightly to 2.36% from a high of 2.54% so the market is perhaps taking some cues from the Fed in recent weeks.
Tomorrow’s US CPI data will provide the next key catalyst for the bond market but in the meantime, a technical break may also weigh on yen pairs and the dollar later today.