Reply To: Bond Traders Weekly Outlook: Yields Rise into Year End


U.S. Treasuries saw some imbalanced behavior between the front of the curve and the back of the curve. The former faced some modest selling pressure while the latter attracted buyers.

The 2s10s spread, inverted by 46 bps coming into today, was wider by 54 bps at the close of the cash session.

Today’s trade involved a $35 bln 7-yr note auction that met with average dollar demand, but nonetheless saw the high yield of 3.921% tail the when-issued yield of 3.913%. There wasn’t much reaction to the auction results.

2-yr: +2 bps to 4.37%
3-yr: +1 bp to 4.18%
5-yr: -2 bps to 3.96%
10-yr: -6 bps to 3.83%
30-yr: -5 bps to 3.92%