Today’s Trading – Longer Yields Rise for the First Time in Five Sessions
Apr 17, 2017
The major U.S. stock indices closed just off of their highs of the day as a strong performance by the financial sectors helped the Dow and S&P to a 0.9% gain; the best daily result since the first day of March. Energy companies were positive on average but lagged the broader index after crude prices fell 0.8%. The Treasury curve regained some steepness after falling last Thursday to its flattest between 2s and 10s since the election. The 2-year yield fell 0.4 bps to 1.20% while the 10-year yield added 1.2 bps to 2.25%. Yield movements were relatively benign considering the weaker inflation data last Friday – while markets were closed – and softer economic reports first thing Monday morning. The Dollar declined again and has faltered in five of the last six sessions.