10-Year Treasury Futures Rise by 3 Ticks, Trading Volume Decreases

In the overnight trading on the 15th, the 10-year Treasury futures closed at 105.70, up 3 ticks. The 3-year Treasury futures finished trading at 103.25, up 1 tick. Foreign investors net bought 19 contracts in the 3-year Treasury futures, while financial investors and individuals net sold 6 and 13 contracts, respectively. In the 10-year Treasury futures, foreign investors net bought 32 contracts, while financial investors and individuals net sold 30 and 2 contracts, respectively. Trading volume showed a decreasing trend, with the 3-year trading volume dropping from 201 contracts to 54 contracts, and the 10-year trading volume decreasing from 73 contracts to 56 contracts. U.S. Treasury yields rose, particularly for long-term bonds, with the 10-year yield up by 5.00 basis points, the 30-year yield up by 4.50 basis points, and the 2-year yield up by 3.00 basis points. July retail sales decreased by 0.6% compared to the previous month, falling short of the market expectation of a 0.1% increase. The weak retail sales are interpreted as a signal of economic slowdown; however, in this overnight trading, the potential for interest rate hikes diminished, leading to an increase in U.S. long-term yields. The domestic bond market is reacting sensitively to U.S. Treasury yields and foreign futures trading.