Bonds Fall to Week Lows

U.S. Treasuries fell Tuesday, trading to week-ago levels as stocks aimed at new records. December data beat estimates with consumer confidence hitting the highest level since August 2001 alongside an improving Richmond manufacturing measure while October home prices increased in line with expectations. Supply in the holiday-shortened week is dragging on prices while ongoing safe-haven and re-balancing issues are seen adding support.

The 30-year has stalled near 3.147% from a low yield/high price near 3.11% and a close near 3.12% Friday. The 10-year is near 2.57% after a 2.546% high and 2.542% close. The five-year has been stuck near 2.055% from a 2.035% high and 2.03% Friday. The two-year has been tethered near 1.23% from a 1.205% close.

The curve trade has been pushed along a slightly steeper slope with the yield gap between the two- and 10-years near 1.35 from 1.34 Friday while spread between the five- and 30-year yields edged to 1.09 plus from 1.09.

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