USTs – 20-Day Outlook Favors Flattening
U.S. Treasuries sold off sharply (10y 2.836 +5.5 bps) Thursday as risk markets surged higher. Markets brushed aside geopolitical risks and trade concerns for at least a moment.
All maturities are near fair values. 5-day outlooks lean bullish across the curve. The outlook for April is bearish for the short-end and bullish for the long-end (flattening-friendly).