2-Year Note futures rebounded as yields eased.

2-Year Note futures climbed higher, staging a recovery from early-week selling pressure and holding firmly above the 103 handle to price at 103'07. Market sentiment shifted positively on news of progress in Middle East negotiations, which pressured commodities and the U.S. dollar while driving buying pressure into Treasury markets. Macroeconomic data also acted as a short-term catalyst, as weekly jobless claims rose slightly higher than expected to 225,000 ahead of the upcoming nonfarm payrolls report. In the cash market, the 2-year yield declined 4 bps to 4.04%, remaining near the upper bound of its recent range. Front-end buying outpaced the long end, leading to a slight steepening of the yield curve as yields across 1-year to 5-year maturities dropped more sharply than long-term bonds.