Monday got the week off to a slow start, with equities setting the tone from start to finish and data having a little bearing on the flattener underway. Equity momentum carried over from the Fed's cut and firmer Q1 GDP early in the session, but the Dow petered out by the close and this helped the long-end outperform.
The personal income/spending combo came in higher than expected, cutting the savings deficit down to -0.8% from a -1.3% nadir in January. This fit with elevated Q1 GDP, and April Chicago PMI bounced back to 38.9% from 19-year lows of 35% in March, though this was below expectations and both prices paid and employment components dove.
The belly of the curve underperformed for much of the session, with call writing on 5s and 10s and some dealer selling reported in the area. The front-end didn't like the data, nor the initial gains on equities, though there was some call buying on September euros and losses were cut as the Dow doubled back into the red. The June bond found good support at 99-31 April 19 lows and eventually took out 100-16 resistance, closing up 7/32 at 100-15.