Business News

Bond Prices Drop


U.S. Treasury prices tumbled early Thursday as data showed an improved jobless claims and wage growth environment as well as a narrowing trade gap. Treasuries have consolidated near the session price lows/yield highs in quieted activity following a pop in size on the initial leg lower. The long bond has been the biggest loser while the two-year outperforms (even as it hit mid-March lows), steepening the curve, while the mid-curve fell to levels last seen about mid-April 11.

The 30-year yield recently traded near 3.01%, flirting with the week’s highs, from an early 2.9667% low and close near 2.955%. Wednesday. The 10-year yield has been stalled near 2.36% from a 2.3228% and 2.309% close. The five-year has been knocking around the 1.89% area from a 1.856% low and 1.845% Wednesday. The two-year is near 1.31 from a 1.2899% low and 1.298% close.

The curve trade has seen flatteners unwind with the yield spread between the two- and 10-years steepened to 1.04 plus from 1.01 Wednesday, near the flattest levels since November. The yield gap between the five- and 30-years widened to 1.12 plus from 1.11.