In today's interest rate markets, Two-Year Note futures found higher price action, rebounding from recent contract lows to trade near 102'31. The primary driver for this shift in sentiment stems from heavy selling pressure in the equity markets, particularly within the tech sector, which has prompted a rotation into treasuries. Additionally, commodity pressure and lower crude prices have contributed to the demand. The two-year note auction of 69 billion performed in line with expectations, matching the previous bid-to-cover ratio of 2.64 and further stabilizing the market. Yields on the two-year note dropped four basis points to 419 basis points, retreating from a 16-month high. Meanwhile, the 10-Year yield also fell as the broader yield curve continues to flatten.
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