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Treasury yields steady as oil prices rise

Mortgage News Daily said bond yields remain near the second-highest levels in 19 years, with 2-year yields down 3 to 4 basis points more than 10-year yields.

Reported · Written up by our desk · Economy

Bond markets were largely steady despite higher oil prices, according to Mortgage News Daily. The outlet said yields are still near the second-highest levels in 19 years, but overnight price action was “almost perfectly flat.”

Mortgage News Daily added that changes in rate expectations helped temper the prior session’s enthusiasm. It noted that 2-year yields are down 3 to 4 basis points more than 10-year yields.

The report also highlighted modest strength in bond performance, with oil providing a reason for losses but prices holding better than expected. The outlet said the day’s data lacks the “shoot the moon” impact of the previous day’s PMIs, and it pointed to a potential test from next week’s economic data instead.

Mortgage News Daily said markets would hesitate to make overly dire conclusions even if the upcoming 7-year Treasury auction is bumpy, with traders mostly waiting for what comes next.

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