Reply To: Bond Traders Weekly Outlook: Yields Squeeze Higher Following Fed Move


Early Bonds U.S. Treasuries found a bid overnight following the release of preliminary July manufacturing and/or services PMI readings for Japan and the eurozone that showed continued weakening in business activity and ongoing angst about Chinese property market issues. Gains have been pretty evenly distributed across the curve.

Lots of attention to be paid this week (for good reason) to policy decisions from the Fed (Wednesday), the ECB (Thursday), and the Bank of Japan (Friday), yet early action today not reflecting any undue concern about hawkish surprises.

New supply is coming this week, too, starting with the $42 bln 2-yr note auction today. The U.S. Dollar Index is flat at 101.08.

2-yr: -3 bps to to 4.82%
3-yr: -4 bps to 4.41%
5-yr: -5 bps to 4.05%
10-yr: -5 bps to 3.80%
30-yr: -4 bps to 3.87%