2-Year Note futures rebounded off lows as the yield curve steepened.

Taking a look at interest rate markets, 2-Year Note futures experienced higher price action, rebounding from a 2.5-week closing low to trade near the intraday high of 103'24. This positive momentum in the futures market is largely attributed to emerging news of potential peace talks, with delegations reportedly heading to Pakistan. These geopolitical developments appear to be alleviating short-term uncertainty and inflation concerns, specifically supporting the front end of the yield curve. Despite limited economic data points for the week, the broader economy appears stable. The yield curve saw some steepening as the 2-Year yield fell 4 bps to 3.78%, while back-end yields remained relatively unchanged. Market participants are now shifting their focus to the upcoming Fed announcement scheduled for next Wednesday.