2Y Note futures hit 1-wk high

Two-Year Note futures extended their rally for a third consecutive session, pushing above the 103 handle to reach a one-week high.

This upward momentum was primarily driven by the latest PCE data, which printed slightly below elevated expectations on a month-over-month basis.

Supportive comments from Federal Reserve officials and steady crude oil prices further buoyed the short end of the curve.

Consequently, the two-year yield dropped 2 bps to 412 bps.

With longer-dated yields remaining largely unchanged, the yield curve experienced a slight steepening, reflecting continued strength in short-dated treasuries.