Fixed Income Close
Bonds went into the weekend on firmer ground following widespread selling that drove yields to their highest levels this year. April Personal Income showed an as-expected 0.2% increase, and Personal Spending rose at the same rate. Core PCE edged up a tame 0.1%.
The 30yr added 20 ticks on the day, driving its yield down to 4.707%. The 10yr added 7 ticks to yield 4.048%, and the 2yr yield came down from 2.68% 2.633% by the close. On the short end, the 4wk bill yield shed 3bps to 1.99%. The 3-month bill yield lost 2bps to 1.88%, while the 6-month edged down 1bp to 2.00%.
Fed fund futures have shifted back to a 100% probability the FED will leave rates unchanged at the June 25 FOMC.