Treasury Yields Extend Gains

Treasury yields rise, on path for a third consecutive gaining day after falling in early morning. The 10-year is at 3.584% and the two-year at 4.101%. Both remain far from highs reached earlier this month. Yields have weakened as the banking crisis and economic data pointed to a slowing economy likely pushing the Fed to soften the rate-increase cycle. Spartan’s Peter Cardillo says in a note that yields are “poised to move lower as negative future economic growth becomes a reality.” Data due tomorrow is expected to show an increase in initial job claims and an unchanged estimate of 2.7% GDP growth in the 4Q.