US02Y·4.686 Treasuries rallied again, extending the rebound we expected from the lows a few weeks ago. US2Y, US10Y·4.999 and US30Y·5.327 fell another 5bp, 9bp and 10bp this week.

September pending home sales fell 7.3% m/m as higher mortgage rates weighed on housing. Bonds are again acting as a hedge against the AI selloff. Higher energy costs have not disappeared, but the growth damage from tight financial conditions is becoming harder to ignore. Next week's Fed decision comes before Thursday's GDP and PCE releases.