Treasury Action: yields have slipped a little lower as positions are squared
Treasury Action: yields have slipped a little lower as positions are squared into the early close, even as the strength in today's data, and especially retail sales, shifts the narrative away from recession and back to growth. Wall Street has relinquished its gains, however, and that should help keep a marginal bid in bonds. The long end continues to lead the bond rally with the 10-year rate over 4 bps richer at 2.551%. The failure to close over the 2.60% level has given shorts a pause, especially ahead of a long weekend. The 2-year rate is down 2.2 bps to 2.378%. Bears have been stymied there by 2.40%, despite closes over that level on Tuesday, Wednesday. The Fed's pause should limit upside pressures as well, though analysts still believe a tightening is the next move later in the year.