U.S. Treasury yields initially moved higher before reversing to close below the 4.05% level for the third consecutive session. This movement places yields near recent lows as the market seeks a new directional catalyst. Data from the CVOL index suggests that volatility has remained in a decline throughout the week, reflecting a period of consolidation ahead of significant economic releases. Market participants are closely monitoring the upcoming February employment report as a primary short-term driver. In the interim, focus shifts to weekly jobless claims data and a scheduled 7-Year auction. Despite early attempts at upside momentum, yields struggled to maintain gains, holding nearly unchanged on the day as the bond market remains in a forward-looking stance regarding the health of the labor market and future policy paths.
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