Treasury Action: bonds are quiet in a consolidative trade
Treasury Action: bonds are quiet in a consolidative trade after big moves so far in October. The 10-year yield is fractionally lower at 3.156%, after hitting 3.14% overnight and having ranged from 3.23% to 3.06% so far this month. The 2-year is flat, having edged up to 2.853% currently from 2.836% earlier, and has been wedged between 2.887% and 2.81% over the past two weeks. Expectations for more Fed rate hikes amid solid U.S. growth have been a major catalyst behind the climb, especially after Chairman Powell said rates are still "a long way from neutral." The run past some key technical levels added to the selloff, even as equities were generally weaker. The mixed, but mostly disappointing September retail sales report didn't provide much impetus one way or another. Meanwhile, political uncertainties and lack of much upward pressure on EGBs is helping keep a lid on Treasury rates for now, while equities await Q3 earnings.