Early Bonds: U.S. Treasuries are on track for a mostly higher start after a couple days of losses.
Overnight action saw a mostly lower showing from equities in Asia while European stocks are also on the defensive. China reported a larger than expected trade surplus for April, though imports decreased more than expected. Comments from some European Central Bank policymakers suggest that the tightening cycle could continue until September.
Today’s economic data was limited to an early-morning release of the NFIB Small Business Optimism Index for April, which fell to 89.0 from 90.1 in March.
The U.S. Treasury will kick off this week’s note and bond auction slate with a $40 bln 3-yr note sale.
The U.S. Dollar Index is up 0.3% at 101.64.
Yield:
2-yr: UNCH at 3.99%
3-yr: -2 bps to 3.70%
5-yr: -3 bps to 3.47%
10-yr: -3 bps to 3.49%
30-yr: -4 bps to 3.80%