Treasury Action: yields are off their highs
Treasury Action: yields are off their highs registered just after the CPI release. The front end of the curve continues to underperform after the CPI data injected a little Fed-threat back into the market. However, the 2-year note is up 2 bps, back at 2.525% after jumping to 2.54% earlier (and a low of 2.50%). The 10-year is 1 bps firmer at 2.699% after piercing 2.71% (2.678% intraday low). Wall Street has cut its opening gains in half with the Dow up about 0.3%, but still holding the 25,500 handle. President Trump continued to play wall funding close to the vest, but didn't indicate he would veto the compromise bill. Additionally, Boeing and Welltower have launched, and pricing has tightened from early guidance, reflecting a resilient market, especially for good names.