Morning Bonds:
U.S. Treasuries sit on their highs after rallying in reaction to the ISM Non-Manufacturing Index for May. Treasuries followed their lower start with a sideways drift through the first 90 minutes of action, but they jumped into the green after the recent batch of data included a weaker than expected Non-Manufacturing Index (actual 50.3%; consensus 52.3%). The Index remained in expansionary territory, but it missed expectations, just like Services PMI reports from Germany, France, Italy, and Spain.
Equities trade near their flat lines with the S&P 500 up 0.1%.
Yields:
2-yr: -4 bps to 4.47%
3-yr: -2 bps to 4.12%
5-yr: -2 bps to 3.83%
10-yr: -1 bp to 3.68%
30-yr: UNCH at 3.88%