Treasury Action: yields steadied below highs
Treasury Action: yields steadied below highs heading into the Fed's Beige Book survey and remained in that state after the Book gave a slight nod to labor, wage and price gains, though without any obvious urgency. Meanwhile, oil prices are continuing to zip 10% higher on the day after OPEC inked a production cut deal, suggesting more upward price pressures potentially ahead. The 2-year yield stalled over 1.135% before easing under 1.12%; the 5-year probed 1.865% before tripping under 1.84%; the 10-year yield probed 2.41% then eased to 2.37%; and the cash bond yield cleared 3.087% before easing under 3.03%. The curve remained steep with the long-end pacing the move and the short-end lagging as yields rose 2-8 bp along the curve. The 2s-10s spread widened 4-5 bp to +125 bp and the 5s-30s is out 2 bp to +119 bp, inside earlier wides. Month-end forces checked the rise in yields as anticipated with front-running of the big 0.12-year index duration extension into the close.