Treasuries Finish Mixed
Treasuries finished mixed Thursday as benign inflation data was offset by data reinforcing economic rebound. So the Treasury curve contracted, amid profit taking. Major curve flattening bets added more pressure to the front end (shorter-dated issues). The break above 4% in the 10-year note triggered more selling. In addition, short covering ahead of the Philly Fed index and a sharp drop in the CRB index brought 10s nearly back to even. But the Philly Fed surge reversed course again, amid fresh selling. However, prices moved back up into the close, though with the curve ending flatter.