Treasury traders increased hedges for higher 5- and 10-year yields ahead of CPI,
as oil-driven inflation risks persist. The 10-year yield held near 4.27%, with
weaker bullish positioning. Jack McIntyre of Brandywine Global Investment
Management said, “Markets are either going to be focused on inflation or
employment…inflation gets all the attention.” Gregory Faranello of Amerivet
Securities said, “We are positioned defensive… we don’t believe rates have the
ability to sustain a move lower.”
