Bonds Aim Higher as Stocks and Oil Slip

U.S. Treasuries followed European bonds higher Monday as stocks and oil skidded lower. The market has been boosted even as a run of Treasury supply in the pipeline has been joined by a batch of corporate debt. Treasury will auction $24 billion three-years Tuesday, $20 billion reopened 10-years Wednesday and $12 billion reopened 30-years Thursday.

The 30-year recently traded 2.972% after tagging a low yield/high price at 2.952% and a 3.003% close Friday. The 10-year is near 2.388% from a high near 2.3666% and a 2.418% close. The five-year is near 1.894% from a 1.8777% high and 1.922% Friday. The two-year is near 1.202% having risen to 1.1857% and a close near 1.218%

The curve trade has been spun along a flatter slope with the yield spread between the two- and 10-years tightened to near 1.18 plus from 1.20 Friday while the yield gap between the five- and 30-years narrowed to 1.07 plus from 1.08 plus.

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