Reply To: Bond Traders Weekly Outlook: US 10-yr and 30-yr Treasury Yields Rise on Inflation Risk


U.S. Treasuries are on track for a firmly lower start in all tenors.

Overnight action featured the release of flash Manufacturing and Services PMI readings from major economies. Japan’s Manufacturing PMI contracted for the fourth consecutive time in the flash reading for February while Australia’s reading remained in expansionary territory for the 34th month in a row. In Europe, Germany, France, and the U.K. reported better than expected flash Services PMI readings for February while Manufacturing PMI readings from Germany and France missed expectations, pointing to continued contraction.

Altogether, the reports released overnight are fueling speculation about more rate hikes from global central banks, including the Fed.

The U.S. Treasury will kick off this week’s note auction slate with a $42 bln 2-yr note sale. The U.S. Dollar Index is up 0.2% at 104.04.

2-yr: +5 bps to 4.66%
3-yr: +5 bps to 4.37%
5-yr: +6 bps to 4.10%
10-yr: +5 bps to 3.88%
30-yr: +3 bps to 3.92%