Reply To: Bond Traders Weekly Outlook: US Treasury Curve Sees 2 Year Note Outperform


U.S. Treasuries are on track for a sharply lower start with shorter tenors expected to lead the early selling.

Global equity markets have a mostly lower showing in overnight trade while sovereign debt has also been pressured. Chinese officials said that they are “reserving the right to deal with similar situations” after the U.S. shot down a high-altitude balloon over the weekend.

In Europe, Bank of Italy Governor Visco said that inflation expectations for the short term are dropping quickly but several other European Central Bank policymakers spoke about the need for more rate hikes.

Bank of England policymaker Mann said that the next move from the BoE is likely to be a hike rather than a cut or a hold.

U.S. Dollar Index is up 0.2% at 103.12, nearing its 50-day moving average (103.72).


2-yr: +11 bps to 4.40%
3-yr: +10 bps to 4.07%
5-yr: +9 bps to 3.76%
10-yr: +7 bps to 3.60%
30-yr: +3 bps to 3.66%