Action Economics: Friday's firm data lit a fuse under Treasury yields, which popped higher after Sep retail sales came in better than expected and headline PPI surged above 1.0%, though the core was a tame 0.1%, offering some solace. The 2-year yield is back to wrestling with 4.20% again, while the 10-year yield made a feint toward 4.70%, both up 3-4 basis points. The curve has dipped inside +50 bp on 2s-10s again as the front-end underperforms on the data mix (firm growth, low inflation). Stocks have rotated back into positive territory for the same reason.
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