Treasurys fight for a 3rd day of gains

US Treasurys are bid in early trading on Thursday as the complex fights for a third straight day of gains. Overnight buying has pushed yields down nearly 2 basis points in the belly of the curve and has yields testing their lows of the week. Here’s a look at the scoreboard as of 7:09 a.m. ET:

  • 2-year -0.4 bps at 1.001%
  • 3-year -1.0 bps at 1.267%
  • 5-year -1.5 bps at 1.656%
  • 7-year -1.7 bps at 2.000%
  • 10-year -1.6 bps at 2.207%
  • 30-year +0.4 bps at 2.926%

The mini win streak comes following a week of heavy selling following Donald Trump’s surprise victory in the election. After bottoming at 1.72% on election, the benchamrk 10-year yield rallied as high as 2.30%. Traders are now paying close attention to the 2.18%/2.20% area as that level has served as support throughout this week. With little support below there, a move into the 2.00% area is possible on a breakdown of that level.

Thursday’s bid has caused the yield curve to flatten slightly, with the 2-10-year spread tigther by almost 2 bps at 120 bps. That spread was trading around 100 bps on election night.

10Y

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