Treasury Action: yields have drifted higher amid a lack of buyers
Treasury Action: yields have drifted higher amid a lack of buyers, even as Wall Street has sagged from its best levels. The break above key technical levels on yields, and continued optimism on a rebound in the economy after a tepid Q1 performance are weighing on bonds. Additionally, belief the FOMC could let the economy, and inflation, run a little hot to make up for the sub 2% is seeing the long end underperform. The 10-year rate is up 3.6 bps to 2.5990%, the highest since March 19, the day before the FOMC announced its more policy leaning. The 2-year is up 1.7 bps to 2.408%. The climb over the 2.55% mark on the 10s and the 2.38% on the 2s has added to the bearish pressure. Analysts look for the bond market to linger near these levels until Thursday's retail sales report provides key direction. Remember it's an early close Thursday, so trading is likely to be fast and furious.