Front end yields climb
The bond market is ratcheting back some of the fear and risk aversion that has been dominating markets. US 2-year yields are up 8.6 bps to 1.92% as they erase yesterday's decline.
Optimistic comments from the Mexican President about the potential for a deal to avoid US tariffs are helping sentiment. There a bit of a standard bounce going on in yields after a bit of an overshoot in the past three weeks. The odds of a July Fed rate cut yesterday hit as high as 63% and that's overdoing it.
Powell speaks shortly.
