U.S. Treasuries are on track for a modestly higher start with shorter tenors expected to show slight relative strength in the early going.
Treasury futures climbed after yesterday’s cash close, building on their gains during the early portion of the overnight session.
The market reached highs just after 22:00 ET, followed by a pullback that returned futures to levels from last evening.
The U.S. Treasury will follow yesterday’s solid 2-yr note sale with a $49 bln 5-yr note auction.
2-yr: -2 bps to 2.53%
3-yr: -5 bps to 2.68%
5-yr: -4 bps to 2.76%
10-yr: -2 bps to 2.75%
30-yr: -1 bp to 2.86%