Developments this week leave the USD in prime position to remain firm in the near term; slow progress on inflation supports the idea of ‘high for longer’ rates in the US but high is not higher; that should mean that upside potential for US terms yields is probably limited. 

Bargain hunters may be sniffing around US bonds while markets still view June as the likely jump-off point for Fed easing (26 bps of cuts priced in via OIS at present).