Reply To: Bond Traders Weekly Outlook: US Treasury Bonds Fall on Fed Higher for Longer


U.S. Treasuries are mostly lower after facing some volatility in reaction to the release of the CPI report for January.

The report matched headline expectations, but the yr/yr CPI rate only slowed to 6.4% in January from 6.5% in December against expectations for a bigger decrease.

Treasuries lurched to session highs in immediate reaction to the report, but that move was followed by an immediate pullback that sent Treasuries to fresh lows.

The 10-yr note and shorter tenors have added to their losses while the long bond sits a touch above a low that was set in immediate reaction to the CPI report.

Equities are off to a lower start with the S&P 500 (-0.5%) trimming this week’s gain to 0.6%.

2-yr: +6 bps to 4.60%
3-yr: +7 bps to 4.28%
5-yr: +5 bps to 3.98%
10-yr: +2 bps to 3.74%
30-yr: -2 bps to 3.77%