Treasury Action: Treasuries and Wall Street are modestly firmer
Treasury Action: Treasuries and Wall Street are modestly firmer, showing little response to the mix of data. Bonds are also taking upcoming supply in stride with no hint of a concession for the upcoming 5-year sale. Helping underpin the markets are the optimistic comments from Fed Chair Powell last night, who said he sees the glass "more than half full," while also reiterating the stance of policy is appropriate and giving no indication of a shift in the foreseeable future. The 30-year bond continues to lead the rally with a 2.9 bp yield drop to 2.17%. The 10-year is 2.4 bps richer at 1.73%, while the 2-year is down 2.2 bps to 1.578%. The break of important levels including 2.19% on the bond, 1.75% on the 10s, and 1.60% on the 2s could give the bulls more room to run. Wall Street is about 0.15% higher. Also the JPM Treasury "All Client" survey showed short positions rose to the highest since April 1, also leaving room for yields to decline.