US 10-year treasury yield fell below 200-DMA

The yield on the benchmark 10-year Treasury note fell below 200-DMA on Friday following a dismal US non-farm payrolls release. The yield clocked a low of 2.141% on Friday; the lowest level since November 10.

Traders still see a Fed hike in June as almost a certainty. The CME FedWatch model puts the probability of a June rate hike at 93.1%.

The yield curve flattened - the spread between two- and 10-year yields shrank to 87 basis points, the least since October. This is bad news for the US dollar, given the greenback has weakened in line with a flatter yield curve.

The yield may trade in the sideways manner this week as Fed policymakers will be on a self-imposed blackout period, while the data docket is pretty light when it comes to first tier data releases.