Reply To: Bond Traders Weekly Outlook: US Treasury Yields Surge After Blowout Jobs Report


U.S. Treasuries on track for a higher start with the long bond expected to pace the early advance.

Treasury futures began rising last evening, continuing their push into the night. The market reached highs around 4:00 ET, followed by some backtracking in recent trade.

Overnight action saw the release of final Manufacturing PMI readings from major economies.

China’s Caixin Manufacturing PMI remained in contraction for the sixth consecutive month while Japan’s Manufacturing PMI contracted for the third month in a row. In Europe, Manufacturing PMI readings from Italy and France returned into expansionary territory while the reading for the eurozone remained below 50.0.

The U.S. session will also feature a sizable batch of economic data, but the main focus will be on the FOMC announcement at 14:00 ET and Fed Chairman Powell’s press conference at 14:30 ET.

Crude oil is building on yesterday’s advance

U.S. Dollar Index is down 0.2% at 101.86.

Yields Check:
2-yr: -1 bp to 4.20%
3-yr: -4 bps to 3.88%
5-yr: -5 bps to 3.59%
10-yr: -4 bps to 3.49%
30-yr: -5 bps to 3.61%