10-Year futures rallied toward May highs on mixed labor data.

Dan Deming of KKM Financial analyzes the recent upward movement in 10-Year Treasury Note futures. Prices recovered from previous selling pressure to push toward the top of their May range, currently trading near 110'24. Deming attributes the strength to a combination of factors, including lower-than-anticipated average hourly earnings that counteracted a strong headline labor number, as well as a drop in consumer sentiment. Additional support came from reduced volatility in WTI Crude Oil futures and recent Fed speak suggesting the labor market is neither too hot nor too cold. As a result, the 10-Year yield fell 4 bps to 435 bps, with the entire yield curve shifting lower to close out the week.