Reply To: Bond Traders Weekly Outlook: Key 2s10s Treasury Spread Compressed 50% In Second Quarter


U.S. Treasuries mostly flat start in most tenors while the 2-yr note is expected to show relative strength in the early going.

2-yr note climbed last evening, and it continues hanging onto its gain this morning. The market received a limited dose of economic data, but it is worth noting that Chinese banks reportedly intervened in the currency market to support the yuan after the currency reached its lowest level against the dollar since late November.

In Europe, expectations are firming for another ECB rate hike in September, as policymakers speak at the two-day Sintra conference, where Fed Chairman Powell will deliver a speech tomorrow.

Crude oil is sliding back toward last week’s low while the U.S. Dollar Index is down 0.1% at 102.55.

2-yr: -6 bps to 4.68%
3-yr: +1 bp to 4.31%
5-yr: UNCH at 3.96%
10-yr: UNCH at 3.72%
30-yr: -1 bp to 3.81%