Treasury Action: the market caught a little bid ahead of the wholesale data
Treasury Action: the market caught a little bid ahead of the wholesale data, and has unwound opening weakness. Rates have richened and are now modestly lower on the session. Shorts are covering after yields climbed to their highest levels since just ahead of the March FOMC. The front end is leading the way with the 2-year down 1 bp to 2.402% from 2.425% earlier. The 10-year is off 0.4 bps to 2.587% after testing 2.61%. Curves are steepening, further distancing themselves from the inversion from late March. While data have been mostly good and supportive of the global recovery narrative, there's some unease over upcoming U.S. retail sales and European PMI reports. The early close in the markets Thursday, with much of the globe shut Friday and a lot Europe remaining out Monday are compounding today's action.