Treasury Action: yields rolled over lower
Treasury Action: yields rolled over lower in the wake of the dive in U. Michigan sentiment into the divisive election and in-line business inventories. The move came in the face of strong opening gains on stocks. The 2-year yield from 0.86% highs reclined to 0.84%; the 5-year yield topped at 1.29% and eased to 1.26%; the 10-year reversed from 1.78% to 1.76%; and the cash bond yield stalled near 2.525% to probe the 2.51% area. Yields are still 1-4 basis points higher along the curve in the wake of the China inflation bounce and stock gains, led by the long-end and curve steepening. The 2s-10s spread has widened 1-2 bp to +92 bp and the 5s-30s by 3 bp to +125 bp.