Reply To: Bond Traders Weekly Outlook: 10 Year Yields at Year Lows with Cooling Economy


U.S. Treasuries finished Tuesday with gains across the curve after overcoming a soft start.

The turn in sentiment followed the release of the Job Openings and Labor Turnover survey for February, which invited new questions about the strength of the labor market. The survey showed that job openings fell by more than 600,000, and when compared to January’s unrevised total, openings were down by nearly 900,000 in February.

The report was met with a jump in Treasuries, which lifted all tenors into the green and was paced by big gains up front. Treasuries built on their gains into the early afternoon, finishing just below their best levels of the day.

Today’s advance sent the 30-yr yield back below its 200-day moving average (3.612%) to its lowest level in nearly three weeks while the 10-yr yield finished four basis points above its low from March (3.295%).

2-yr: -15 bps to 3.84%
3-yr: -14 bps to 3.59%
5-yr: -14 bps to 3.39%
10-yr: -9 bps to 3.34%
30-yr: -5 bps to 3.59%