The story of the week in the bond market was a trio of Treasury auction tails in 2s, 5s and 7s. That led to heavy selling across the curve and pushed yields above pre-CPI levels, raising questions about the path of interest rates and whether the bond market had confidence the Fed could get inflation under control.
Others pointed to month-end factors and the possibility of buying-the-dip in bonds.
The latter case got some ammunition today as US 10-year yields fell 8 bps to erased the Wednesday rise (though not the Tuesday climb).
US 10 year yields
With that the US dollar has retraced its Wednesday gains as well.
