[MoneyNeverSleeps]

Early Bonds: U.S. Treasuries mixed start with longer tenors expected to show slight strength in the early going while shorter tenors are set to begin below their flat lines.

EU Commission’s winter forecast called for 0.9% growth in the eurozone while the outlook for 2024 remains unchanged at 1.5%. Inflation for 2023 is expected to decelerate to 5.6% and slow to 2.5% in 2024.

U.S. Dollar Index is down 0.1% at 103.53.

Yields
2-yr: +4 bps to 4.55%
3-yr: +3 bps to 4.23%
5-yr: +2 bps to 3.94%
10-yr: UNCH at 3.74%
30-yr: -3 bps to 3.80%

[MoneyNeverSleeps]

U.S. Treasuries are mostly lower after facing some volatility in reaction to the release of the CPI report for January.

The report matched headline expectations, but the yr/yr CPI rate only slowed to 6.4% in January from 6.5% in December against expectations for a bigger decrease.

Treasuries lurched to session highs in immediate reaction to the report, but that move was followed by an immediate pullback that sent Treasuries to fresh lows.

The 10-yr note and shorter tenors have added to their losses while the long bond sits a touch above a low that was set in immediate reaction to the CPI report.

Equities are off to a lower start with the S&P 500 (-0.5%) trimming this week’s gain to 0.6%.

Yields:
2-yr: +6 bps to 4.60%
3-yr: +7 bps to 4.28%
5-yr: +5 bps to 3.98%
10-yr: +2 bps to 3.74%
30-yr: -2 bps to 3.77%

[MoneyNeverSleeps]

Early Bonds: U.S. Treasuries mostly flat start after yesterday’s post-CPI reversal
U.S. Treasury will sell $15 bln in 20-yr bonds.

Overnight speculation that the Bank of Japan’s new leadership could look to raise rates by the end of the year.

In Europe, inflation in the U.K. decelerated for the tenth consecutive month in the January reading while the eurozone’s industrial production decreased more than expected in December.

The U.S. Dollar Index is up 0.4% at 103.59.

Yields:

2-yr: +1 bp to 4.64%
3-yr: +1 bp to 4.34%
5-yr: +2 bps to 4.02%
10-yr: UNCH at 3.76%
30-yr: -2 bps to 3.78%

[MoneyNeverSleeps]

U.S. Treasuries are on track for a lower start after yesterday’s intraday reversal.

Treasury futures slipped last evening, adding to their losses as the night went on. The market fell to lows at the start of the European session, followed by a bounce that erased a portion of the overnight losses.

The rate hike conversation has remained at the forefront during an otherwise quiet European session. The U.K. reported better than expected Retail Sales for January, but the overall levels were down on a yr/yr basis.

U.S. Dollar Index is up 0.7% at 104.57, reaching a six-week high.

Yields:

2-yr: +7 bps to 4.70%
3-yr: +6 bps to 4.40%
5-yr: +5 bps to 4.10%
10-yr: +5 bps to 3.89%

[MoneyNeverSleeps]

Treasury yields pulled back somewhat following the pleasing import-export price data for January.

The 2-yr note yield was at 4.70% a short time ago, but sits at 4.66% now.
The 10-yr note yield, at 3.90% a short time ago, sits at 3.88%.

Import prices fell 0.2% in January following a revised 0.1% decrease in December (from +0.4%). Import prices, excluding oil, rose 0.3% in January after a 0.4% increase in December.

Export prices rose 0.8% in January after a revised 3.2% decline in December (from -2.6%). Export prices, excluding agriculture, fell 0.8% in January following a revised 3.3% decrease in December (from -2.7%).

[KnovaWave]

U.S. Treasury yields closed a down week on a modestly higher note Friday, backing down from overnight highs tempering some selling pressure in the sto
[See the full post at: Bond Traders Weekly Outlook: US Treasury Bonds Fall on Fed Higher for Longer]

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