U.S. Interest Rate Markets

June 10-year T-notes this morning are up +0.50 of a tick. Thursday's closes: TYM8 -1.00, FVM8 +0.75. Jun 10-year T-notes on Thursday fell to a new contract low and the 10-year T-note yield rose to a 6-3/4 year high of 3.12%. T-note prices were undercut by signs of strength in the U.S. economy after weekly continuing claims fell to a 44-1/2 year low and the May Philadelphia Fed business outlook survey climbed to a 1-year high. T-note prices were also undercut by increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 3-3/4 year high of 2.20%.