US 10-year note yields are at the lows of the day, down 5 basis points to 2.65%.
After a brief flirt with 3.00%, yields have been dropping as the market buys what the Fed buys. In the bigger picture, there is a tailwind behind yields. Data released today showed foreigner cutting Treasury holdings by nearly $40 billion in Q2, the first drawdown since 2009. It’s not even half of what the Fed buys in a month but the big turn in bonds has only just begun and that pace likely picked up in Q3, at least until the Fed decision.
