Treasury Action: yields remain lower as the bond market is in risk-off mode
Treasury Action: yields remain lower as the bond market is in risk-off mode on trade war angst. The better than expected income report helped move rates up a little though, from earlier levels and overnight lows. The 2-year rate is down 5.5 bps at 2.00%, but was as low as 1.984%. The 10-year is 3.7 bps lower at 2.175%, from 2.145%. The short end is the outperformer, as the market screams for a Fed rate cut on building recession fears. Indeed, the 3mon-10yr spread compressed to -22 bps, though it's since retreated to -17 bps. The drop in the Bund yield to -0.215% will also pressure Treasury rates lower, while, month-end flows may support too.