Treasury Yields Move Lower
Action Economics: Yields steadied at lower levels Monday morning after the relatively tame core PCE price reading at 1.9% y/y, which came in comfortably within the Fed's 1-2% unofficial target range. Yet this was offset somewhat by a hotter than expected Q2 ECI print and jump in benefit costs to the biggest gain since Q1-2005. The 10-year yield has edged under 4.83% after hitting highs above 4.86% in overnight trade as global stocks recovered. The 2s-10s spread remains flatter at +21 bp on the modest unwinding of risk premiums.