US Treasuries bull-steepened on Friday, with short-term and intermediate maturities outperforming.
Safe-haven buying provided support for Treasuries after a selloff in large technology stocks pushed the Nasdaq 100 toward its third technical correction of the year.
Near the close, swap spreads narrowed sharply amid month-end duration extension flows, while November fed funds futures saw a surge in volume driven by heavy buying throughout the day.
Just after 3pm New York time, yields at the front and belly of the curve fell about 2 basis points, with the 2s10s and 5s30s spreads widening by about 1.5 basis points and 3 basis points intraday, respectively.
The 10-year Treasury yield closed about 1 basis point lower at 4.93%, near the low end of the week's 4.89%-5.05% range.
Technology stocks remained under pressure, with the Nasdaq 100 falling sharply as safe-haven demand drove short-term debt higher.
Disappointing earnings from technology companies pushed the Nasdaq 100 down about 10% from its peak, approaching a technical correction.
As of 3pm New York time, Treasury futures volume was about 20% above the 20-day average, supported by month-end flows.
At the front end of the curve, November fed funds futures volume approached 500,000 contracts in late trading, with dense buying emerging at the 96.120 level.
As of 4:47pm New York time, the 2-year Treasury yield fell 1 basis point to 4.5876%.
The 5-year Treasury yield fell 2.1 basis points to 4.7215%.
The 10-year Treasury yield fell 0.6 basis points to 4.931%.
The 30-year Treasury yield rose 1 basis point to 5.3093%.
The spread between 5-year and 30-year Treasury yields widened by about 2.9 basis points to 58.42 basis points.
The spread between 2-year and 10-year Treasury yields widened by about 0.4 basis points to 33.93 basis points.
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