Bond Markets Continue to Flatten

So the weakness in the US bond market continues and rates converging higher to meet Fed Funds. When we look at the most recent highs across the US yield curve spectrum we can see that the 5Y on out is now higher than the prior highs and the 2Y is very close, but not there yet. the July 6th levels put in were our ceiling but you can see now via the orange line below that only the 2Y hasn’t made it above that dates levels, yet:

When we look at today’s settlements in the US bond market, the front end continues to flatten out as the yield curves pancake continues:

However we must note that the 2Y was at one point -100bps in the 2s30 and 2s10 so we are still well off those lows.

The Nasdaq had a decent rebound day and we noted on Friday the Vwap area for the SP was support and in the Nasdaq would be resistance as it was well below it on the daily last Friday. Well today it closed right up to it. Patient sellers will see if they can get a chance at 15500 area to sell, but bears will want to magnet this Vwap here for a bit:

Source, CQG, www.magnelibra.com