Treasury Action: yields remain only marginally firmer
Treasury Action: yields remain only marginally firmer, even as Wall Street bounces on improved risk appetite. Trading has been on the thin side ahead of the "long" weekend with the markets closed Thursday and open for shortened sessions on Friday. Growth concerns and geopolitical risks are helping cap yields for now, while Fed rate hike expectations for December and ongoing normalization in 2019 will sustain upward pressure on rates. Next week's auctions should impact too, with $111 B in shorter notes on tap. Meanwhile, uncertainties over the policy trajectory, and how fast and how high rates will go, will keep rate markets jumpy. The front end is now underperforming on the day with the 2-year up 1.6 bps to 2.82% ahead of supply, while the 10-year is 0.5 bps higher at 3.068%. Talk the FOMC might pause in the spring, along with weaker data, saw the 2-year outperform earlier with the yield at 2.80%.