U.S. Treasury yield spreads saw limited movement during the past week. The 2s10s spread saw some counter-trend narrowing, tightening by two basis points to 151 bps while the 2s30s spread widened by two basis points to 218 bps. The narrowing in the 2s10s spread was owed to a show of relative strength from the 10-yr note while the 5-yr note also showed relative strength.

Corporate spreads were also mixed, as the high yield spread compressed by six basis points to 310 bps, reaching a fresh low for the year. Meanwhile, the investment grade spread expanded by two basis points to 65 bps, inching up off this year's low. 

The yield spread between Germany's 10-yr bund and the U.S. Treasury 10-yr note increased by four basis points to -199 bps.

The 5y5y forward rate decreased by three basis points to 2.10%, surrendering its uptick from two weeks ago.

The fed funds futures market does not expect any changes to the fed funds rate range in 2021.