10-Year T-Note futures hit a two-week low as yields rose.

In this daily market commentary, Dan Deming breaks down the latest movements in the fixed income markets, focusing on 10-Year T-Note futures and Treasury yields. 10-Year T-Note futures traded down to a two-week low, hovering around the 109'010 level and temporarily dipping into the 108'000 handle before finding intraday support. This downward price pressure pushed the 10-Year Treasury yield up 1 bps to 455 bps, marking a two-week high. While initial early-session yield gains were driven by rising weekend geopolitical tensions in the Middle East, the market's focus has shifted toward upcoming economic catalysts. Fixed income participants are closely monitoring this week's Federal Reserve discussions and inflation data, especially following last week's stronger-than-expected labor market indicators. Additionally, the yield curve experienced steepening as short-term yields drifted lower on front-end buying, while selling pressure kept long-term yields elevated.