Bond Prices Lower

U.S. Treasury prices slipped from early gains Thursday as stocks pushed higher. Prices slid on the heels of a batch of better data with improved jobless claims and better-than-expected Philadelphia manufacturing capped by an in line April leading indicators. The market remains near levels last seen around April 20 with the two- and five-years underperforming, flattening the curve.

The 30-year yield recently traded near 2.90% from an overnight 2.934% high, early 2.8735% and 2.895% close Wednesday. The 10-year yield was near has been working near 2.225% from a 2.252% high, 2.1825% low and 2.215% close. The five-year yield recently was near 1.765% from a 1.784% high, 1.7162% low and 1.75% Wednesday. The two-year was near 1.275% from a 1.2866% high yield, a 1.2174% low and 1.245% close.

The curve trade has squeezed along a flatter slope with the yield differential between the two- and 10-years near 95 plus, edging further into the tightest levels since October, from 97 Wednesday. The spread between the five- and 30-years flattened to 113 plus from near 114 plus.

By Bucky Rini