Bond Prices Lower

U.S. Treasury prices stalled out Monday following a mix of data with June home sales missing while manufacturing jumped in July while services were flat. The long end has led lower with the 10-year working the high end of the month’s range caught between 2.24% and 2.25% with the curve trade little-changed but leaning flatter. The event risk littering the calendar includes the Wednesday Federal Open Market Committee (FOMC) decision, a run of $88 billion in Treasury supply, a smattering of key data and a run of earnings reports.

The 30-year yield recently was near the highs at 2.828% from a 2.8013% overnight low and 2.802% close Friday. The 10-year yield was near 2.248% from a 2.229% low and 2.232% close. The five-year was near 1.82% from a 1.7948% low and 1.80%close. The two-year yield was near 1.36% from 1.336% low and close near 1.344%. The curve trade was mixed with the two- and 10-year yield spread slightly flatter just inside the 89 close while the differential between the five- and 30-years steepened to near 101 from 100.4.