U.S. Treasuries pared early losses Tuesday as stocks trimmed gains. Treasuries were pressured on rising global inflation measures and equities while later domestic manufacturing and construction data beat expectations. The mid-curve has been hit hardest while the two- and 30-year wings outperform. Treasuries have continued to suffer in the face of expected upticks in inflation, fiscal spending and increased debt supply.
The 30-year recently traded near 3.075% from a 3.133% high yield/low price and 3.05% close Friday. The 10-year is near 2.479% versus a 2.5163% low and close near 2.43%. The five-year is stalled near 1.975% from a 2.0065% low and close near 1.92%. The two-year is near 1.24% from a 1.258% low and a 1.20% Friday.
The curve trade remains mixed with the yield differential between the two- and 10-years steepened to near 1.25 from near 1.23 Friday while the spread between the five- and 30-year yields flattened to 1.10 plus from a close near 1.13.