Treasury Action: yields remained remained lower
Treasury Action: yields remained remained lower without much hindrance from the predicted widening of the budget gap in October to $100 B. Stocks have made some halting steps to bounce on the shoulders of Apple short-covering, but remain upwardly challenged on the day. The 2-year yield is residing in a tight range near 2.90%, the 5-year eased from 3.02% session highs to 2.99%; the 10-year toppled from 3.174% to 3.148%; and the 30-year eased slightly from 3.385% to 3.37%. Compared to Friday levels, yields are 1.8-5.1 basis points lower, paced by the belly, lagged by the wings, especially the underperforming bond. The 5s-30s spread is 3.3 bp steeper near +38.1 bp.