U.S. Interest Rate Markets

Sep 10-year T-notes this morning are up +9.5 ticks at a 3-week high. Thursday's closes: TYU8 +7.00, FVU8 +3.75. Sep 10-year T-notes on Thursday closed higher on the weaker-than-expected U.S. Jul core PPI report of +2.7% y/y (vs expectations of +2.8% y/y) and the conclusion of the Treasury's quarterly refunding which prompted bond dealers to cover short hedges put on ahead of the auctions.