U.S. Interest Rate Markets

Mar 10-year T-note prices this morning are up +1 tick. Thursday's closes: TYH8 -3.50, FVH8 -0.50. Mar 10-year T-notes on Thursday fell to a new contract low and closed lower. T-note prices were undercut by negative carry-over from a surge in the UK 10-year yield to a 1-3/4 year high after the BOE raised its UK 2018 GDP forecast to 1.8% from 1.6% and said it may need to raise interest rates earlier than expected as inflation is expected to remain above its 2% target. Treasury prices were also undercut by supply pressures as the Treasury auctioned $16 billion of 30-year T-bonds.