Prices of Treasury coupon securities are, on balance, posting modest losses across the curve as the most tumultuous year in the history of the fixed income draws to a close.The yield on the benchmark 2 year note is unchanged at 0.72 percent. The yield on the 3 year note has climbed a basis point to 0.92 percent. Indeed each of the other benchmark issues has seen its yield climb one basis point, also. The 5 year note yields 1.45 percent and the 10 year note yields 2.07 percent. The 30 year bond yields 2.57 percent.
The 2 year/10 year spread is 135 basis points. I still believe that the spread is reacting to the tremendous curve flattening of the last six weeks and some participants are just booking profits. The primary trend to a flatter curve remains intact and participants will soon look for a way to enter those trades.
There was virtually no meaningful economic data overnight.
Mortgage applications touched a five year high.
In a few minutes investors will get a view of the weekly jobless claims data.