Treasury Action: yields have continued to drift lower
Treasury Action: yields have continued to drift lower alongside small declines on Wall Street. Reassuring comments from Chair Powell that he sees no evidence that inflation is heating up, as well as the cooling in annual PPI, have supported Treasuries. The downdraft in rates this week has forced shorts to throw in the towel as well, with short covering supporting today's action. The 10-year note's failure to test 2% has also turned sentiment more bullish. The long end is 7.5 bps lower at 2.291% on the bond and 1.808% on the 10-year, with the 2-year off 5.3 bps to 1.583%. Wall Street is in the red, but only by about 0.23% amid concerns over trade, continued worries over a slowdown in China after the weakness seen in the data overnight, and Hong Kong protests.