2-Year T-Note futures drift lower on softer auction demand.
Interest rate markets see shifting dynamics as 2-Year T-Note futures face selling pressure following a six-week high. Prices drift back toward the 102'01 level amid slightly softer demand at the latest 2-Year Note auction and a broader equity market recovery. Focus shifts to central banks, with multiple policy announcements expected this week, including from the Fed. On the cash side, the 2-Year yield climbs above 3.71%, contributing to a flattening yield curve as the spread between the 2-Year and 10-Year compresses to 26 bps—its narrowest level since late September.
Interest rate markets see shifting dynamics as 2-Year T-Note futures face selling pressure following a six-week high. Prices drift back toward the 102'01 level amid slightly softer demand at the latest 2-Year Note auction and a broader equity market recovery. Focus shifts to central banks, with multiple policy announcements expected this week, including from the Fed. On the cash side, the 2-Year yield climbs above 3.71%, contributing to a flattening yield curve as the spread between the 2-Year and 10-Year compresses to 26 bps—its narrowest level since late September.