Us Treasuries rose in early trading, led by medium-term Treasuries, with the yield on the 10-year note falling to 1.126 per cent at one point. Break-even inflation has fallen, falling about 5 basis points over the 10-year period since 8: 00 EDT. Trading volume in US bond futures is still much higher than usual.

At one point, the yield on medium-term government bonds widened by 6.5bp, while 2s5s10s and 2s5s30s widened by 5bp and 6.5bp. At one point, the five-year yield fell to 0.629 per cent, hitting the 200-day moving average.

As of 9:30 eastern time, US bond futures trading volume was 85% of the 20-day average, and more than 10-year Treasury contracts were actively traded.

Us 10-year break-even inflation fell to 2.21 per cent at one point, still rising about 4 basis points on the day, testing its lowest level since March.