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2-Year Tsy Yield Breaks Above 1%

US TSYS

Cash Treasury curve bear flattens as participants return to the market after a long weekend in the U.S. Yields sit 1.5-3.9bp higher as we type, while 2-year yield has crossed above the 1% mark for the first time since Feb 2020, as hawkish Fed chatter has grown louder.

  • T-Notes have edged higher after the Tokyo re-open, but in the grand scheme of hands they remain at depressed levels, last changing hands -0-09+ at 127-28+. Eurodollar futures run 1.5-4.0 ticks lower across the curve.
  • The Empire Manufacturing Survey headlines the otherwise light U.S. docket today.

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