Treasury Action: yields cooled off from highs
Treasury Action: yields cooled off from highs after relatively dovish comments from Atlanta Fed rookie Bostic, who was cautious about forecasts of 3-4 rate hikes and concerned about Fed inflation credibility, viewing policy neutrality as nearby. Stocks resumed gains, however, and a dollop of $56 B in 3-, 10- and 30-year supply looms later this week. The 2-year yield pulled back to 1.96% after topping 1.968% earlier; the 5-year yield eased to 2.28% from 2.293%; the 10-year dipped to 2.47% from 2.489%; and the 30-year yield sank to 2.815% from 2.827%. Of course, that's a minor pullback from highs and yield are now little changed along the curve. That's left the 2s-10s spread just inside +52 bp.