Treasury Action: yields probed lows
Treasury Action: yields probed lows after a more defensive tone kicked in ahead of the weekend, as the dollar shot higher, stocks remained underwater and crude oil dipped. Some attributed the dollar spike to pre-weekend short-covering after its weakness following all the recent dovish Fedspeak, which would partly explain the move's odd juxtaposition to the mostly tepid CPI report. Others pointed to the massing of Turkish troops along the Syrian border, though that has been ongoing. Yet Turkey appears to be salivating at the U.S. troop withdrawal, rebuffing WH Advisor Bolton's attempt to head them off at the pass. After repeated failures to get a toehold above 2.75%, the T-note yield has eased back to session lows near 2.69%. Yields are 2.1-4.2 basis points lower across the curve now, with the belly outperforming the wings. The 5s-30s spread has accordingly bull steepened 2 bp to +51.1 bp.