Treasuries Continue Their Comeback

Concerns over more lockdowns and restrictions in the EU have bled into domestic markets this morning as equities sell-off in pre-opening trading while bonds rally. The yield on the Ten-Year has drifted down to 1.65% while the Long Bond has rallied to 2.36%. The Two-Year is little changed at around 15 basis points. A little later, the Census Bureau is expected to report that New Home Sales fell about 6% in February and the Richmond Fed is scheduled to release its Manufacturing Index and a slight improvement is expected. Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell will begin the first of two days of Congressional testimony later this morning. Meanwhile, crude oil has slipped below $60 with this morning’s price slide of almost $2.50. Gold is little changed at $1,740. This afternoon, the Treasury is selling $60B Two-Year notes.