Fixed Income Close
Treasuries closed flat to higher in quiet trade, losing hold of gains made earlier in the session when NAPM-Milwaukee disappointed. Bonds also benefited from equity weakness as shares in LEH dropped to 8yr lows, but equity futures trended higher into the close, sapping fixed income gains.
The 30yr was flat with a yield of 4.528% and the 10yr ended up 2 ticks to yield 3.979%. At the shorter end, the 2yr was up 1 tick, yielding 2.624%. There was massive selling in the 4wk bill, with its yield 16bps higher at 1.53%.