U.S. Treasury Yields Ease But Likely to Stay Rangebound

U.S. Treasury yields were declining but remained near recent levels after Wednesday's mixed session, which also saw a soft five-year Treasury note auction, said Pepperstone's Michael Brown in a note.

"For now, it seems that benchmarks are to be stuck in a relatively tight trading band," the senior research strategist says. Dip buying interest—where investors buy in phases of bond weakness—continues to be seen on any downside, he said.

For 10- and 30-year Treasury yields, 4.50% and 5.00% remain the key levels, respectively, Brown said. That said, rallies beyond 4.25% and 4.75%, respectively, seem unlikely, given ongoing jitters over the fragile fiscal backdrop, he said.