Bond Prices Extend Losses

U.S. Treasury prices tumbled Thursday with the long bond leading lower while the two-year was little-changed as the curve wound sharply steeper. The market continues to feel the heat from ongoing hawkish talk from officials as central banks look to reel-in the easy-money policies. A run of mixed data with in-line to lower reads on jobs and better-than-expected headlines on services data. Ongoing talk of reducing global quantitative-easing policies remains the dominant driver.

The 30-year yield recently traded near the highs at 2.916% against an overnight low of 2.8467%, and 2.855% close Wednesday. The 10-year yield was near 2.384% versus a 2.3215% low and 2.332% close. The five-year yield neared mid March levels, trading to 1.9783% from a 1.905% overnight low and 1.92% Wednesday. The two-year yield was near 1.4185% from a 1.3944% low and 1.41% close. The curve trade was swung along a steeper slope, heading back to levels last seen late May, with the yield spread between the two- and 10-years widened to 97 from 92.2 while the five- and 30-year steepened to 96 from 93.5.

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