Treasuries ended the week lower, finally breaking the two-week trading range. Thursday's Fed Custody holdings data unnerved players early on. This news, in addition to the surging Nikkei, raised speculation of reduced foreign-exchange intervention by the Bank of Japan, underscoring the weaker Treasury open. Talk that banks would raise their estimates for more improved payrolls number next Friday further underscored weakness.
The Personal Income and Personal Consumption data were positive. But initial selling was light, picking up on the downside, however, following the revised pop in the University of Michigan's consumer sentiment data.
The dip was bought, and retail lifted 10-year notes. From that point on, however, the Street eyed the approach of the 3.78% yield support. Once breached, sales flooded in, with technical selling pushing prices lower. Treasuries never recovered, falling further at the close.