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Bond Continues to Plow Higher

US TSY FUTURES
Tsy bonds continue to surge, USU1 +2-30 to 160-24 session high; 30YY slips to 2.0468% low after tapping 2.2171% overnight -- broad range still inside the 22bps range seen on Feb 26.
  • TD Securities FI strategists add the "initial curve steepening was driven by a selloff in the 5y sector as the market pulled forward tapering and hike expectations. However, the flattening has been replaced by short-covering buying, exacerbating the move."

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