Reply To: Bond Traders Weekly Outlook: Two Year Note Compresses 2s10s Spread Further


Bonds weaker after Industrial production and retail sales:

Total industrial production increased 0.5% month-over-month in April (consensus 0.0%) following a downwardly revised 0.0% (from 0.4%) in March.
Total retail sales increased 0.4% month-over-month in April (consensus +0.7%) following an upwardly revised 0.7% decline (from -1.0%) in March.

U.S. Treasuries were on track for a higher start after a couple days of losses in most tenors ahead of that data.

The overnight session saw the release of weaker than expected April growth figures from China while Germany’s ZEW Economic Sentiment Survey missed expectations with economists noting that Germany could still slip into a recession.

Later in the day, President Biden will hold another debt ceiling meeting with Congressional leaders at 15:00 ET.

Crude oil was little changed while the U.S. Dollar Index is down 0.1% at 102.29 ahead of data

2-yr: +3 bps to 4.03%
3-yr: +2 bps to 3.69%
5-yr: +2 bps to 3.49%
10-yr: +3 bps to 3.54%
30-yr: +4 bps to 3.88%