Reply To: Bond Traders Weekly Outlook: Treasuries Rally with Flight to Safety Ahead of FOMC


U.S. Treasuries have ticked down from their early highs, but they continue hanging onto big gains with the 2-yr note continuing its massive surge from last week.

Thanks to today’s extension of recent gains, the 2-yr yield is now down 100 basis points since Tuesday while the 10-yr yield is down 47 basis points in that timeframe.

Today’s opening spike briefly sent the 10-yr yield past its 200-day moving average (3.467%) to a level not seen since the start of February while some recent backtracking lifted the 10-yr yield back above that mark.

Equities started the day in the red, but thy have recovered their early losses with the S&P 500 (+0.1%) hovering just above its flat line.

2-yr: -53 bps to 4.06%
3-yr: -41 bps to 3.87%
5-yr: -32 bps to 3.64%
10-yr: -20 bps to 3.50%
30-yr: -9 bps to 3.61%