10-year Treasury continues to hover near 4%

Bond Auction Analysis - The auction of $69 billion two-year notes received a "C" grade, indicating moderate demand [1] - The auction of $70 billion five-year notes was considered a "B," suggesting solid demand [1] - A six-hour chart of the 5-year notes shows low yields coinciding with the auction's conclusion around 1:00 PM Eastern [1] Yield Curve and Trends - Two-year, three-year, and five-year yields are slightly elevated, flattening the yield curve [2] - Seven-year yields are virtually unchanged, with a $44 billion seven-year auction scheduled for the next day at 1:00 PM Eastern [2] - The 10-year yield has been circulating around 4%, with intraday lows at 394 and highs at 405 over the past two weeks [3] - The 10-year yield has been closing between 395 and 403 over the last couple of weeks, indicating a tight range [3] Impact of Fed Policy - Elevated yields earlier in the month were attributed to the Fed minutes released on October 8th, which highlighted concerns about the labor market [4] - The Fed's concerns about the labor market pushed yields down, acting as a catalyst for an aggressive easing cycle [4] - The market anticipates another easing measure from the Fed this week [4]