Bonds & Rates
Treasury yields slip after soft price data
Bond prices gain as yields fall across the curve, while credit stays firm.
Treasuries rally across maturities. The 5-year Treasury falls 1.4%, the 10-year drops 0.9%, and the 30-year declines 0.7%. That moves the 5-year to 4.313%, the 10-year to 4.641%, and the 30-year to 5.213%.
The day’s move lines up with a softer inflation tone in the news flow. Reuters says wholesale prices were flat in July, below expectations for a 0.2% increase, and also notes that traders are reducing rate hike bets.
Credit holds up. LQD rises 0.4%, HYG adds 0.2%, and MUB gains 0.2%.
The bond market stays above longer-term trend lines, with all three Treasury benchmarks above their 200-day averages.