In overnight market action there was no change in the apparent disconnect between bonds and stocks. Bond yields remain near their recent lows, while equity market have either erased their virus-induced losses are have even set new record-highs. In the Asian session UST yields stayed a couple of basis points above yesterday’s lows. More importantly, UST yields failed to set new post-virus lows yesterday. At pixel time the 10y was trading at 1.56 and the 2y at 1.42. USD OIS continue to price in two Fed rate cuts as the 3m2y and 3m10y spreads remain inverted.


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