Investors Eye Treasury Futures for Gauge of 1% 10-Year Breach
- Ultra 10-year bond futures drop close to an implied 1% yield
- Thursday’s record 30-year auction poses next duration event
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With U.S. cash-bond markets closed for a holiday on Wednesday, all eyes were on Treasuries futures, where implied yields on U.S. 10-year notes got within a whisper of breaching the key psychological 1% level earlier in the day.
The U.S. ultra 10-year Treasury note future -- which aligns with the May 2030 cash security -- declined in Asia trading amid a sharp selloff in global bonds, which saw Australian 10-year yields touch 1%, the highest since September. The U.S. ultra 10-year contract dropped as low as 155-12+, which implies around a 0.99% 10-year Treasury yield. A drop through 155-12 equates to an approximate breach of that 1% level. It was at 155-27+ in late morning New York trading.