U.S. Treasury futures rose, indicating that yields will open lower on Wednesday

Affected by the weekly ADP employment data, U.S. Treasury futures rose in the morning session and generally maintained their upward trend thereafter, indicating that when the cash market for Treasuries reopens after the Veterans Day holiday, the 10-year yield may open lower by about 5 basis points to around 4.07%. There is a demand for protection against the rise of the 10-year Treasury in the options market.

In the mid-afternoon in the U.S., short-end Treasury futures rose about 2 ticks, while long and ultra-long Treasury futures rose about 15 ticks.

This price movement suggests that when the cash market reopens on Wednesday, the 10-year yield may open lower by about 5 basis points to around 4.07%; the 30-year yield may open lower by about 3 basis points to 4.67%; and the 2-year Treasury will strengthen slightly