Yields pressing to new highs
March 26, 2026
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–Market continues to yo-yo with conflicting reports of escalation and de-escalation. Stress in private credit markets is another constant factor. Yesterday yields declined with 2s -4 bps at 3.881%, 5s -5.5 at 3.968% and 10s -6 at 4.324%. On the SOFR strip reds, greens, blues and golds were +6.5 to +6.0. Going into today’s 7y auction, yesterday’s yield declines/price gains have evaporated, for example red SOFR pack is -5.5 and 10y yield is back at 4.375%. Five-year is at a new cycle high this morning (4.029%) with 10 & 30 close to new highs. Oil rebounding somewhat; precious metals are under pressure.
–Yesterday featured a new low in 2/10 at 44.3 bps. Last August low was 41.5.
–RTRS reports that China is considering easing bank shareholder limits, but no real reaction in China equities.
–April treasury options expire tomorrow. Current TYJ6 110.5^ is 31 ref 110-18. Peak put open interest is 110p with 80k. Settled 2 yesterday and current 4/6 ref 110-175. Job Claims expected 210k.
