And indeed, as BMO's rates strategy duo of Ian Lyngen and Jon Hill notes, an extension of the grinding bid for duration was the primary development during the overnight session and it was one which has brought 30-year yields to new record lows.

With 1.907% now representing the lowest rate ever for the long bond, we remain biased for a break even lower as the final week of August continues to unfold. Similarly, the local low in 10s at 1.444% is likely to be challenged given the bullish backdrop that remains well in place for Treasuries.

This, as BMO notes, bodes well for an ongoing flattening of the yield curve, which was further observed after today's very strong 5Y auction.