Last week's movement in U.S. Treasury yield spreads was limited, but the 2s10s spread set a fresh high for the year at 71 bps before dipping to 67 bps, which represents a five-basis point increase for the week. The 2s30s spread also hit a fresh high for the year, widening by eight basis points to 146 bps. The widening was fueled by continued weakness in Treasuries of longer tenors.

Corporate spreads tightened after a week of limited movement. The high yield spread narrowed by 14 basis points to 490 bps while the investment grade spread tightened by three basis points to 95 bps.

The yield spread between Germany's 10-yr bund and the U.S. Treasury 10-yr note decreased by three basis points to -142 bps, hitting a fresh seven-month low.

The 5y5y forward rate dipped five basis points to 1.85% with the 2020 high (1.92%) looming not far above.

The fed funds futures market does not expect any changes to the fed funds rate range over the next year.