Treasury Action: yields rebounded from lows
Treasury Action: yields rebounded from lows before stalling after the in-line business inventories report. This followed sharp swings with those of Bunds after the ECB moves and presser, and the rebound is defying the move lower in Bund yields, which has stuck. The 2-year yield is holding near 2.56% after bouncing from 2.553% lows; the 5-year is near 2.826% from 2.804% lows; the 10-year is at 2.96% from 2.933% lows; and the 30-year is nearer session highs of 3.085% from 3.048% lows. Yields are now just 1.2-2.4 bp lower along the curve, paced by the outperforming bond and the 2s-30s spread has widened back through +50 bp. The 5s-30s is near +25 bp and the 2s-10s near +39 bp. 7s-10s narrowed to within a handful of bp and inversion there could presage a like move elsewhere on the curve. The Bund/T-note spread has widened through +251 bp as bunds outperform.