Illustration: Rebecca Zisser/Axios
The Treasury market is getting back to normal after the Fed's massive bond-buying announcement earlier this week.
What to watch: Yields on Treasury bills were negative out to three months, closing in the red late Wednesday, as traders continued to favor paying to loan the government money over buying longer-dated bonds.
- The Fed's QE program and investor pessimism kept Treasury prices rising and yields falling despite hearty gains for U.S., European and Asian stocks.
Major key: Treasuries have seen a significant decline in the bid-ask spread on prices for notes and bonds since the Fed took action.
- "The bid-ask spread on benchmark U.S. 10-year Treasury notes had widened as much as 200 basis points on March 20, but narrowed to within a range of six basis points or less on Wednesday, according to Refinitiv data," Reuters' Gertrude Chavez-Dreyfuss and Ross Kerber noted.