U.S. Treasuries had a mixed showing to end the week with the 5-yr note and shorter tenors recording losses while 10s and 30s outperformed, finishing in the green.
The Treasury complex was eager to continue trimming this week’s losses at the start of the session, but the higher open was rebuffed quickly, sending shorter tenors into the red in mid-morning trade.
Comments from Fed Governor Waller contributed to the early selling after he said that he would need to see an improvement in inflation or a significant deterioration in the labor market to consider a rate cut.
In addition, the market grew more concerned about the claims made by recent reports that a peace deal with Iran is just around the corner.
The early pullback from highs found support shortly after 5s and shorter tenors turned negative while 10s and 30s held onto their gains for the day and for the week.
Crude oil gave up $9/bbl this week while
U.S. Dollar Index spent the bulk of the session near its flat line at 99.26, ending the week little changed.
Yields:
2-yr: +2 bps to 4.12% (+4 bps this week)
3-yr: +2 bps to 4.17% (+2 bps this week)
5-yr: +1 bp to 4.27% (+1 bp this week)
10-yr: -3 bps to 4.56% (-4 bps this week)
30-yr: -4 bps to 5.07% (-6 bps this week)