Bonds Consolidate Near Lows


U.S. Treasuries slowed their roll lower Friday, consolidating near the week’s highest yield/lowest price levels following the sell-off on the back of inflation and sales data. Volumes jumped on the initial leg lower but slowed into the next batch of consumer confidence and inventories reports.

The 30-year has dropped to hold near 3.02%, the highest yield/lowest prices in a week, from 2.937% ahead of the data and a 2.96% close Thursday. The 10-year is near 2.42%, pushing week-ago levels from 2.33% into the data and a 2.36% close. The five-year is near 1.923% from the low just inside 1.94% versus an early 1.824% and 1.865% close. The two-year is near the 1.22% point from a 1.2334% low, an early 1.1525% and a 1.18% close.

December retail sales revealed the expected 0.6% gain after small upward prior revisions, but strength was concentrated in the auto, gasoline and building material components with weakness in the remaining retail sales categories. The PPI headline was up 0.3% as expected, while the core, ex-food and energy input rose a a higher 0.2% versus 0.1% consensus.