Bonds Gaining Ground in Early Trading

As investors await a flurry of housing numbers this morning, Treasury prices continue to edge higher. Comments from Fed officials aimed at calming inflation jitters appear to be having the desired effect. The Long Bond has rallied to around 2.29% while the Ten-Year’s yield has slipped to 1.59%. The Two-Year is little changed at 15 basis points. Crude oil is pretty steady at $65.77 while gold is up slightly to $1,884. Equity futures are pointing to a positive opening.

Later this morning, home price reports from the FHFA and Case-Shiller will be released along with New Home Sales for April. The Conference Board will also be publishing its Consumer Confidence Index for May and the Richmond Fed will announce its latest Manufacturing Index. This afternoon, the Treasury will be selling $60B Two-Year notes.