S&P MARKETSCOPE: Long-dated Treasuries closed down slightly. The 10-year note fell 04/32 to 99-22/32 for a yield of 4.16%. The 30-year bond fell 05/32 to 114-30/32 for a yield of 4.40%.
Trading was quiet, with many market participants sidelined ahead of CPI, retail sales, and jobless claims data tomorrow.
The May trade deficit narrowed to $55.35 billion from $56.9 billion in April. This was below the expected $57 billion forecast, and signals upward revisions to June quarter GDP projections. The reaction in the bond market was muted, though, with most focusing on tomorrow's inflation data.