Treasury Action: Treasuries remain slightly weaker
Treasury Action: Treasuries remain slightly weaker, but yields have drifted down from earlier highs. Trading has been non-committal, however, with modest position jockeying after this week's 10+ bp drop in rates. The long end is outperforming, with the 30-year rate 0.4 bps lower at 2.30%, with the 10-year off 0.7 bps at 1.827%, while the 2-year is down 1.7 bps at 1.608%. The market is likely to remain inside a narrow range near term as bulls will be capped by the improvement in risk appetite, while bears will be contained by the FOMC's steady-to-dovish rate posture, low inflation, the demographics mentioned by Chair Powell, and still negative rates abroad. Meanwhile, optimism over a trade deal, the support from accommodative central banks, the diminished fears over a recession, and the bullish momentum on Wall Street that's seen record high, after record high. The advent of the Thanksgiving holiday will also likely stifle trading.