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%