U.S. Interest Rate Markets

Jun 10-year T-note prices this morning are up +1.5 ticks. Wednesday's closes: TYM8 unch, FVM8 -0.25. Jun 10-year T-notes on Wednesday closed little changed. T-note prices found support on the the wider-than-expected U.S. Jan trade deficit of -$56.6 billion, which was negative for Q1 GDP. T-note prices were also supported by the decline in stocks, which boosted the safe-haven demand for T-notes. T-note prices were undercut by hawkish comments from Fed Governor Brainard who said stronger global growth and "very substantial" U.S. fiscal stimulus gives her confidence in the inflation outlook. T-note prices were also undercut by the Fed Beige Book that said a tight labor market was contributing to "moderate inflation" in most Fed districts.