Daily Flows & Insights – U.S. 10 Year Treasury Bonds Reach Decade Highs

Daily Flows

  • Market participants in search of yield have been directing NCD flow to foreign branch banks who price wider than domestic names.
  • An ‘A’ rated foreign branch bank offering +45 for 3 months in comparison to +40/+45 for 3 months from BBB domestic banks.
  • A rate of 5.40% for 11 month TD was offered for the rolling of funds in the BBB space.

U.S. 10 Year Treasury Bonds Reach Decade Highs

  • The U.S. 10-year Treasury bonds have hit decade high levels at 4.35%.
  • U.S. bonds continue to selloff as yields take into account that narrative that rates will need to stay higher for longer as pockets of stronger-than expect growth continues to come in.
  • All eyes will be on Powell this week to see if he gives any indication on future monetary policy.
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Curve Team
Jack Pedersen