Reply To: Traders Market Weekly: Markets Rupture with Soaring yields and Fund Outflows

#44673
Truman
Participant

Treasury note yields pulled back noticeably as equity futures pushed into positive territory.

The 10-yr note yield, at 4.01% overnight, sits at 3.86% now.
The 2-yr note yield is down 17 basis points to 4.14%.

Selling briefly lifted the 10-yr yield above the 4.000% mark for the first time since April 2010, but futures bounced over the next few hours, accelerating their rebound after the Bank of England announced a plan to conduct temporary purchases of longer-dated gilts “to restore orderly market conditions.”

The announcement gave a brief boost to the pound, but the move was retraced entirely, sending Sterling to a fresh session low.

Reports from last evening indicate that Treasury Secretary Yellen will leave the administration after midterms.

U.S. Treasury will sell $36 bln in 7-yr notes to follow weak offerings of 2- and 5-yr notes over the past two days. The U.S. Dollar Index is up 0.5% at 114.64, reaching a fresh high for the year.

2-yr: -9 bps to 4.22%
3-yr: -10 bps to 4.30%
5-yr: -6 bps to 4.15%
10-yr: -1 bp to 3.95%
30-yr: +3 bps to 3.86%