2-Year Note futures slipped within their monthly range.
In today's interest rate markets, 2-Year Note futures moved lower, drifting back toward the 103 handle and settling into the middle of their monthly range. Early U.S. economic data, including housing starts and consumer sentiment, crossed mostly in line with expectations but initially created mild buying pressure. However, sentiment shifted over the course of the session due to a rally in WTI Crude Oil futures, driven by escalating geopolitical tensions in the Middle East. Higher energy costs impacted forward-looking inflation expectations, prompting a sell-off on the front end of the Treasury curve while the back end remained bid. As a result, the yield curve flattened, with the Two-Year yield climbing 1.5 bps to 417 bps by the afternoon.
In today's interest rate markets, 2-Year Note futures moved lower, drifting back toward the 103 handle and settling into the middle of their monthly range.
Early U.S. economic data, including housing starts and consumer sentiment, crossed mostly in line with expectations but initially created mild buying pressure.
However, sentiment shifted over the course of the session due to a rally in WTI Crude Oil futures, driven by escalating geopolitical tensions in the Middle East.
Higher energy costs impacted forward-looking inflation expectations, prompting a sell-off on the front end of the Treasury curve while the back end remained bid.
As a result, the yield curve flattened, with the Two-Year yield climbing 1.5 bps to 417 bps by the afternoon.