Daily Market Color

10-Year Hits New Multiyear High

Curve steepening continues, 10-year yield closes at new multiyear high. Rate rose across a steepening curve today, putting the 2s10s inversion of last week firmly in the rearview mirror. The Fed’s comments around balance sheet runoff is at least partially responsible, and Fed officials continued to emphasize the central bank’s commitment to tightening monetary conditions in their public comments today. The 10-year Treasury yield would close 6bps higher to end the day at 2.66%.

NATO to consider arming Ukraine with heavier weaponry. Thus far, the alliance has avoided supplying Ukraine with advanced weaponry like planes and tanks and has instead supplied the nation with drones, anti-tank missiles and other defensive weaponry. The move could potentially exacerbate the already extremely strained relationship with Russia and further challenge energy prices which have moderated significantly from their peak earlier this month.

Day ahead. Tomorrow will be a quiet one data wise. The market will get a brief look at wholesale inventory growth, but otherwise the calendar is devoid of any major releases or Fed speakers.

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