Treasuries Give Back Ground After Initial Surge But Still Close Higher

Treasuries initially rallied on Tuesday after inflation came in weaker than expected, but gains faded as the session progressed. The move suggests the rate market quickly adjusted to the inflation surprise before reversing part of the impact by the close.

Analysis

Treasuries initially rallied on Tuesday after inflation came in weaker than expected, but gains faded as the session progressed. The move suggests the rate market quickly adjusted to the inflation surprise before reversing part of the impact by the close.