Better than expected unemployment numbers, rising home sales and a lack of bad news out of Europe all contributed to falling Treasury prices over the last week.  Yields on the 2-year note rose 2 bps to 0.24 percent while the 10-year yield rose over 16 bps to 2.025 percent, steepening the yield curve by the most since November.  The weakness in Treasuries has continued into today's trading as promises of progress out of Europe have reduced the demand for safety.  At the time of this writing, the 2s10s spread has widened to 183 bps.  Agency bullets performed well last week as yield spreads to rising Treasury rates narrowed for many areas of the bullet curve.  On the short end of the curve, 1 and 2-year spreads were unchanged to a basis point tighter.  The 3-year and 10-year sectors saw the greatest amount of tightening at about 3 to 4 bps each.  Previous weekly spread levels for 5-year bullets make the sector look pinned at roughtly +33 to Treasuries, despite some intra-week volatility that has occurred.  In fact, the 5-year area has tightened a basis point or two during today's trading. 

The information represented herein was obtained from various sources, which we believe to be reliable.  Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security.  And it is not intended to guide the investor on which securities to buy, or when to buy or sell.