Reply To: Bond Traders Weekly Outlook: Treasuries Closed Out April Solidly Across the Curve


Early Bonds: U.S. Treasuries sit on their highs after adding to their initial gains. Treasuries followed their firmly higher open with an immediate extension of gains that has continued through the first two hours of action.

Economic data released overnight showed an uptick in Japan’s BoJ Core CPI, though BoJ Governor Ueda said that it is appropriate to maintain yield curve control policy at this time.

The belly outperformed at the start, and it remains ahead, but all tenors sport solid gains with the 10-yr yield hovering about 25 bps above its April low (3.253%).

Economic data released showed better than expected new home sales in March (actual 683,000; consensus 630,000) and a dip in Consumer Confidence to 101.3 from 104.0 (consensus 104.1).

Equities are off to a weak start with the Nasdaq (-0.9%) trading behind the S&P 500 (-0.7%).

2-yr: -9 bps to 4.02%
3-yr: -12 bps to 3.71%
5-yr: -13 bps to 3.47%
10-yr: -11 bps to 3.41%
30-yr: -9 bps to 3.64%