The outlook for two-year yields remains largely dependent on the size of the Fed's expected rate cuts, and that remains fluid and will be most affected by whether the data continues to show momentum or whether the soft landing versus hard landing debate reignites Influence.

However, others should also watch how expectations of the easing develops, as normally towards the end of an easing cycle the 2yr moves to a yield premium versus 10yr yields. Though it seems premature to look at 2yr and the end of Fed easing, if the easing cycle turns out to be modest what would be the impact on 2yrs?