“With everyone chasing yield, if that inversion does grow to 10 or 20 basis points, people will have to reconsider whether they should be investing in the long end or back at the short end, where they can get a higher rate. With the Fed putting rates up at the short end, that's going to be attractive to people with a short-term investment horizon.”
“It looks like the two-year note will also have a low ratio because the market is not willing to pay a higher price for the new supply. It means the yield will likely be higher going into the auction.”
“Payrolls is one of the main indicators of how strong the economy will be and a strong number means that there will be more rate hikes from the Fed. Yields are heading up across the curve.”