Fixed Income Close
Bonds trended steadily higher and finished strongly despite equities’ recovery into the close. The 30yr added 13 ticks and again breached the 118 mark. The 10yr was up 11 ticks to 116-20. Today’s range completely encompassed yesterday’s, and resistance at 116 held for a third straight day.
Meanwhile, the 2yr added 5 ticks to 106-18. The 2yr-10yr spread has widened to 155bps, from about 146bps last week.
On the short end, the 3-month bill was very well bid, its yield dropping 10bps to 1.69%. The 4wk bill yield was down 7bps to 1.74% and the 6-month and 1yr yields fell 6bps each, to 1.90% and 2.04%, respectively.