Bond Prices Stall in Range

U.S. Treasury prices remained lower late Monday, Prices held in a range with the two-year outperforming while the long bond lagged, before dropping lower into the close. Participants note the global event calendar Thursday should hold prices in check, with the U.K. general election, European Central Bank statement and Congressional testimony from former FBI director James Comey up. The domestic economic calendar is comparatively light on the week with details on next week’s three-, 10- and .30-year Treasury auctions also due Thursday. The 30-year yield traded near the high about 2.843% from a 2.805% overnight low and 2.81% close Friday. The 10-year yield also skirted the highs near 2.18% from an overnight low at 2.1555% and a close near 2.16%. The five-year yield aimed at 1.74% against an early 1.7483% high, 1.714% low and 1.719% Friday. The two-year yield was near 1.305% from a 1.318% high, 1.286% low and 1.29% Friday.

S&P chief economist Beth Ann Bovino wrote regarding the jobs data that the disappointing May payrolls, in the face of reports “job openings are near all-time highs, it suggests that businesses are struggling to fill these positions in an increasingly tighter market.” The drop in the household unemployment rate to a new cycle low, she writes, was “for the wrong reasons–it was largely because lots of people left the labor force and fewer people were employed compared with the month before.”

By Stephen Holmes