Treasury futures slide as hawkish Fed tone offsets weak data.
2-Year T-Note futures reversed lower during Friday's session, falling back toward 101'24 after initially breaking above the 102 handle. An initial surge of buying pressure followed nonfarm payrolls and PCE data that came in below expectations, driving yields lower across the curve. However, market sentiment shifted as a hawkish tone from Fed officials brought policy discussions back to the forefront, creating selling pressure that pushed yields back toward their highest levels in several decades. The 2-Year yield climbed 4.5 bps to 4.83%, approaching the 4.85% highs seen earlier in the week. The broader yield curve moved higher across the board, with the 10-Year yield reaching 5.28% and the 30-Year yield testing 5.64%, challenging levels not seen since 2007.
2-Year T-Note futures reversed lower during Friday's session, falling back toward 101'24 after initially breaking above the 102 handle. An initial surge of buying pressure followed nonfarm payrolls and PCE data that came in below expectations, driving yields lower across the curve. However, market sentiment shifted as a hawkish tone from Fed officials brought policy discussions back to the forefront, creating selling pressure that pushed yields back toward their highest levels in several decades. 85% highs seen earlier in the week.
64%, challenging levels not seen since 2007.