Bonds Extend Gains on Mixed Data

U.S. Treasuries saw the long end lead higher and consolidating near the low yield/high price levels early Wednesday following a run of mixed data. The market has seen some position-squaring ahead of the marquee event the Federal Open Market Committee meeting statement and economic projections due at 2 p.m. ET. Data showed November retail sales were lighter than expected while producer prices were hotter. Production and business inventories both fell.

The 30-year has pushed to Thursday highs recently 3.097% from a 3.086% morning high and close near 3.145% Tuesday. The 10-year headed back to Friday territory, trading near 2.434% from a 2.4242% high and 2.479% close. The five-year is near 1.879% from a close near 1.91% while the two-year is sneaking around the 1.158% level versus 1.17% Tuesday.

The curve trade continued along a flattened slope with the yield differential between the two- and 10-years near 1.27 plus from 1.31 Tuesday while the spread between the five- and 30-years was near 1.22 versus a close near 1.24.

Leave a Comment