A Bit of Profit-Taking Saps Treasury Strength

The Treasury market rose early this morning on the strength of an overnight Japanese rally and a nice performance by the dollar against the yen, but bonds have since retreated on thin volume. Later the Treasury Department will announce details of its upcoming two-year auction, but there's very little driving the market this morning.

"We've had a slow but steady rally since the employment report on the 5th, and traders were prepared to take some profits here," said John Canavan, Treasury market analyst at Stone & McCarthy Research in Princeton, N.J.

As of 10 a.m. EST, GovPX volume was down 31.7% when compared with the average first-quarter Wednesday last year. The 30-year Treasury bond lately was down 9/32 to trade at 96 15/32. The yield on the bond rose slightly, to 5.49%. ...