Morning Notes — Yield Curve Support

Key support of the 5/30 yield curve sits in the 75-79bps range.  We expect the 5/30 curve to hold above those levels given the fundamental outlook and recent yield deceleration at the front end of the curve.  Now at ~1.14%, 5-year yields faded on the approach to resistance near ~1.29% more than a week ago. Two-year yields tested March’20 highs at ~0.55% last Thursday and Friday, but have faded from those levels and now at ~0.46%.