Reply To: Bond Traders Weekly Outlook: Fed Favorites PCE and ECI


U.S. Treasuries sit on their lows after adding to their initial losses.

The trading day started with modest losses in all tenors that were widened immediately after the start. Recent action saw a slip to fresh lows, which has lifted the 10-yr yield to its highest level in nearly three weeks.
5-yr yield has been lifted above its 200-day moving average (3.664%) while the 30-yr yield is back above its 50-day moving average (3.765%).

Selling pressure began building as the focus shifted to action in Europe, where sovereign debt also trades lower while equity markets display modest gains. There has been a continued debate over the next policy move from the European Central Bank as policymaker Centeno said that the ECB should slow or pause its rate hikes while policymaker Kazaks said that there is an option for a 25- or 50-bps rate hike at the May meeting.

Chinese government is reportedly blocking Secretary of State Blinken’s visit to Beijing due to displeasure about an FBI probe into the downed Chinese spy balloon.

U.S. Dollar Index is up 0.1% at 101.70.

Equities are off to a subdued start with the S&P 500 (+0.1%) having the spent the first hour of trade inside a nine-point range.

2-yr: +6 bps to 4.16%
3-yr: +5 bps to 3.89%
5-yr: +7 bps to 3.68%
10-yr: +5 bps to 3.58%
30-yr: +5 bps to 3.79%