Reply To: Bond Traders Weekly Outlook: Risk on to Risk Off Transition Feeding Emerging Market Contagion


U.S. Treasuries have backed down from their opening levels with longer tenors continuing their early underperformance.

Longer tenors lagged in overnight action, and they remain behind with the 30-yr yield rising past last year’s high (4.425%) to a level not seen since 2011. 10-yr yield marked a session high (4.312%) just two basis points below its high from last year (4.333%), though it ended yesterday’s session at its highest level since 2008 and is on track to do the same today.

Equities are off to a mixed, but somewhat flat, start with the S&P 500 (+0.1%) holding a modest gain while the Nasdaq (-0.3%) underperforms.

2-yr: -1 bp to 4.96%
3-yr: UNCH at 4.67%
5-yr: +3 bps to 4.44%
10-yr: +5 bps to 4.31%
30-yr: +5 bps to 4.41%