Eurodollar Futures Market News and Commentary
Sep 10-year T-notes (ZNU21) on Tuesday closed little changed, up +0.5 of a tick. The 10-year T-note yield rose +0.3 bp to 1.497%.
September 10-year T-note prices on Tuesday settled little changed. Supply pressures early Tuesday weighed on T-notes as the Treasury auctioned $24 billion of 20-year T-bonds. However, T-notes recovered their losses on signs of strong demand for the auction. Tuesday's U.S. economic data was mixed for T-note prices. Trading activity remains subdued ahead of the outcome of the Tue/Wed FOMC meeting.
T-note prices are being undercut by caution ahead of the Tue/Wed FOMC meeting, where there is a chance that the FOMC will start discussing when it should begin tapering its $120 billion per month QE program. The FOMC will also update its economic forecasts and may drop hints about the timing of QE tapering.
Tuesday's U.S. economic data is mixed for T-notes. On the negative side, U.S. May PPI ex-food & energy rose +4.8% y/y, right on expe... Read more