Reply To: Bond Traders Weekly Outlook: 2-year Treasury Yield fell 73.5 in March, Biggest Monthly Drop Since January 2008


U.S. Treasuries on track for a lower start with the belly expected to show relative weakness in the early going.

Treasury futures followed yesterday’s sharp slide with a higher start to the overnight session, but the modest early gains were erased toward the end of the Asian session. The overnight session was quiet in terms of economic data, but the market received a series of news headlines, including comments about central bank digital currency plans from officials in Japan and the eurozone.

Treasury yields continue to climb this morning, reflecting the sentiment shift around bank stocks.

The 2-yr note yield is back above 4.00%, up three basis points to 4.02%. The 10-yr note yield is up four basis points to 3.56%.

The U.S. Dollar Index is down 0.3% to 102.56.

Energy complex futures trade in mixed fashion. WTI crude oil futures are up 0.1% to $72.86/bbl and natural gas futures are down 0.9% to $2.19/mmbtu.

2-yr: +2 bps to 4.02%
3-yr: +5 bps to 3.84%
5-yr: +4 bps to 3.64%
10-yr: +3 bps to 3.56%
30-yr: UNCH at 3.76%