10-Year T-Note futures are trading higher for a second consecutive session as markets recover from recent selling pressure. Prices for June futures recently reached the 112'01 level, bouncing off lows not seen in several months. The move higher coincides with moderated volatility in equity and commodity markets. Traders are also monitoring geopolitical developments in the Middle East while preparing for a busy economic calendar. Tomorrow's highlights include critical inflation data and a Federal Reserve announcement, both of which are expected to drive sentiment in the fixed income space. Yields moved lower today, with the 10-Year Treasury yield falling 2 bps to 4.20%, while the yield curve flattened slightly from the 2-Year to the 30-Year.
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