Yield Curves Pare Back Steepening Late

Rates finish modestly higher -- bonds at upper half of range since midmorning. Yield curves still steeper but off highs as short end pared gains w/ block sellers in 2s and 5s late. Tsy 2s10s at 34.272 (+3.094) vs. 38.183 high; 5s30s at 4.289 (+1.266) vs. 8.309 high.

• Tsys bounced after delayed buying not necessarily tied to March reading of the Producer Price Index gained +1.4% MoM vs. +1.1% exp (+11.2% YoY vs. +10.6% exp).
• Geopol risk moving closer to front burner again after Russia state media TASS reported US weapons convoy/deliveries to Ukraine to be viewed as valid targets. Meanwhile, Sweden and Finland appear closer in joining NATO (see 0636ET and 0732ET bullets), potentially expanding NATO-aligned country boarders w/ Russia threefold to appr 1000 miles from 300 now.
• Tys pared gains, bouncing back near midday highs after $20B 30Y auction re-open (912810TD0), Bond sale tails slightly: 2.815% high yield vs. 2.804% WI; 2.30x bid-to-cover vs. 2.46x last month.
• Busy day for economic data Thu, Fed speak on early close ahead extended Easter holiday weekend (Friday close): weekly claims, retail sales, import/export prices, business inventories and U-Mich sentiment. NY Fed Williams Bbg interview at 0845ET, Cleveland Fed Mester and Philly Fed Harker after the close.
• The 2-Yr yield is down 3.7bps at 2.3686%, 5-Yr is down 2bps at 2.669%, 10-Yr is down 1.1bps at 2.7101%, and 30-Yr is up 0.2bps at 2.8109%.