Reply To: Bond Traders Weekly Outlook: Flipping Between End of Inflation and Hawkish Fed Trades


U.S. Treasuries of most tenors retreated on Tuesday, lifting yields to one-week highs ahead of tomorrow’s release of the CPI report for March (consensus 0.3%; prior 0.4%).

Treasuries lows right at the completion of today’s $40 bln 3-yr note sale, which met good demand, and finished the day just above those levels.

Chicago Fed President (FOMC voter) Goolsbee said that the Fed should be careful about raising rates too aggressively until there is more evidence about progress in taming inflation.

2-yr: +5 bps to 4.05%
3-yr: +4 bps to 3.82%
5-yr: +3 bps to 3.55%
10-yr: +2 bps to 3.43%
30-yr: -1 bp to 3.62%