Treasury Action: yields paused at highs after surging
Treasury Action: yields paused at highs after surging heading into the U. Michigan report, which subsequently came in shy of expectations. Stocks earlier rebounded from lows and yields took out some inflection points on the way up, with the benchmark 10-year handily through 2.63% March 2017 highs and the 5-year a stone's throw from the 2.50% psych area and the bond eying 3.0%. The 2-year yield shot up to 2.064% from the 2.05% area, while the 5-year probed 2.435% from 2.41% and the 30-year cleared 2.925% from 2.89%. After the dust settled, yields remained 1.3-2.6 basis points higher on the day, paced by the limp bond. Bearish steepening has resulted, with the 2s-10s spread a bp wider at +58 bp and the 5s-30s spread near +49 bp.