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


Longer-dated Treasuries continue hovering near their flat lines while shorter tenors underperform, sitting near their lows.

Shorter tenors retreated right at the cash start, responding to the 8:00 ET release of Germany’s March CPI (actual 0.8%; expected 0.7%). The report was a bit of a surprise since overnight action saw some strength in fixed income after CPI reports from Spain and a few German states were cooler than expected.

U.S. Q4 GDP was revised down to 2.6% from 2.7% while initial claims increased but remained below the 200,000 level. Equities are off to a solid start,

Looking to build on their big gains from yesterday. The S&P 500 (+0.5%) has extended this week’s advance to 1.9% while the Nasdaq (+0.7%) is now up 1.6% for the week.

2-yr: +7 bps to 4.14%
3-yr: +3 bps to 3.92%
5-yr: +2 bps to 3.69%
10-yr: UNCH at 3.57%
30-yr: -2 bps to 3.76%