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2Y, 5Y Yields Set For Biggest Drop Since March 2020

US TSYS

As the latest Covid variant calls into question the Fed's 2022-23 rate hike schedule, 2Y Yields are right on 0.5000%, up slightly from the session low of 0.4862% - but down 14bp and on pace for easily the biggest one-day drop in yields since Mar 2020 (will be hard to beat 20.4bp drop on Mar 3 2020 though).

  • 5Y slightly outperforming (-14.7bp) with yields also dropping the most since Mar 2020, but we've seen at least a couple of big drops in 5Y this year (~8bp) so it doesn't look quite as outsized as the 2Y move where the biggest drop in 2021 has been ~5bp.

Source: BBG

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