Treasury Action: yields turned lower
Treasury Action: yields turned lower following the bond market's embrace of the new 30-year paper, which benefited from the risk averse environment and latest downturn on stocks as well after the minor concession earlier. The current 30-year yield stalled under 2.83% overnight, toppled to 2.79% lows, then rebounded over 2.816% into the sale before subsiding to 2.80% again, compared to the 2.818% award rate on the new bonds. Yields are 0.3-2.0 basis points lower along the curve, with the exception of the 2-year, which is marginally higher. 10s are outperforming and the 2s-10s spread has flattened 2 bp to trade inside +89 bp as a result. NASDAQ is now off 1.7% and the S&P 500 is testing its 50-day m.a. support line at 2,448.