Treasury Action: yields are consolidating above lows
Treasury Action: yields are consolidating above lows after being knocked off their perch by the trade spat/skirmish/battle, while Fed Chair Powell's adherence to further gradual rate hikes and questions about labor slack and inflation trends hasn't left much of an imprint with Wall Street still near lows. The 2-year yield backed up to 2.29% from 2.266% lows vs 2.31% highs; the 5-year steadied near 2.60%, up fro 2.58% and down from 2.64% highs; the 10-year reclaimed 2.79% from 2.77% lows vs 2.83% highs; and the cash bond yield rebounded to 3.04% from 3.02% lows vs 3.073% highs. In terms of the curve, yields remain 2.9-4.6 basis points lower, paced by the belly. The 2s-10s spread is 2 bp steeper near +51 bp.