Bonds Consolidate Prices

U.S. Treasury prices stalled into a tight range trade late Friday with the five- and 10-years running neck-and-neck for the lead in lightened trade. The early data showing tame inflation and light retail sales reads supported the rally, erasing most, if not all, the week’s losses. The market saw added aid as stocks wobbled with short-coverage into the weekend after tagging levels last seen in late March Thursday.

The 30-year yield recently stalled near 2.99% from a yield low of 2.9826%, 3.0287% high and 3.039% close Thursday. The 10-year yield has been held near 2.33% after making a new 2.3204% low from a 2.3927% high and 2.40% close. The five-year yield is hugging the 1.85% from a 1.842% low, 1.923% high and 1.926% close. The two-year yield has been working around the 1.295% point versus a .2783% low, 1.3472% high and 1.347% Thursday. On top of low inflation reads and expectations the market got further flight-to-quality support, participants preferred to be long ahead of a weekend of further uncertain headlines.

By Stephen Holmes