Reply To: Bond Traders Weekly Outlook: Two Year Rates Jump in U.S., U.K and E.U on Inflation Fears


U.S. Treasuries continue trading in mixed fashion with shorter tenors holding losses while 10s and 30s sit in positive territory.

Treasuries slipped to lows in immediate reaction to today’s batch of data, which showed in-line Personal Income growth in April and a larger than expected increase in Spending.
However, the market began rising off lows about 90 minutes later with the long bond rising past its opening high while the 10-yr note is back near its starting level.
Shorter tenors have also risen off their lows, but they remain in the red.


Tokyo CPI for May and Japan’s cabinet office raised its overall economic assessment for the first time since July.
Europe has been on the subdued side with European Central Bank policymakers maintaining that more rate hikes are on the way.
There have been more reports of progress in debt ceiling negotiations, though the concern this morning is that House Democrats may oppose the concessions that the White House is making when it comes to spending levels.

2-yr: +7 bps to 4.56%
3-yr: +6 bps to 4.23%
5-yr: +2 bps to 3.92%
10-yr: -1 bp to 3.80%
30-yr: -3 bps to 3.97%