US TSYS: SGH Macro says “A Fed messaging offensive is underway, culminating with Chair Yellen’s twin speaking engagements on May 27 and June 6, to move market pricing higher for a June rate move.” Data are stronger.

US TSYS: Treasuries drift off the afternoon range highs. Some eyed the SGH Macro viewpoint that Fed was doing a “messaging offensive” about potential rate hikes (see 12:43pm ET bullet.) One trader said, “as long as the foreign interest rates stay low, and the Fed stays accommodative, foreign buyers are praying that the Fed will hike in June. The front end to the 3-year notes Treasuries will get hurt,” then “foreigners will jump in and buy the dip.” He added that the foreign buyers “are hoping that there will be something that will cause US Treasuries to go lower” since the overseas countries’ “own interest rates” are negative.