Reply To: Bond Traders Weekly Outlook: Two Year Note Compresses 2s10s Spread Further


Early Bonds: U.S. Treasuries modestly higher start in longer tenors while the short end is expected to begin closer to unchanged.

Last night’s debt ceiling meeting was described as positive, but it did not yield any immediate results. Staff level talks are expected to continue in the coming days and President Biden will shorten his trip to the G7 summit in Hiroshima to have more time for negotiations with Congressional leaders.

U.S. Treasury will sell $15 bln in 20-yr bonds this afternoon.

Crude oil is reclaiming yesterday’s loss while the U.S. Dollar Index is up 0.3% at 102.82.

2-yr: +1 bp to 4.08%
3-yr: +1 bp to 3.74%
5-yr: -1 bp to 3.52%
10-yr: -3 bps to 3.52%
30-yr: -3 bps to 3.84%