Treasury Action: yields have spiked, cheapening on the much stronger than expected sales and production data, and the rally on Wall Street. The belly and front end of the curve are underperforming as the data keeps the door open for an aggressive tightening path from the FOMC. The 5-year rate is up over 10 bps to 2.929%, with the 2-year 9.5 bps higher at 2.665%, with the 10-year rising 8 bps to 2.962%. The curve has narrowed to 29 bps versus 30 bps Monday and 33 bps Friday. Stocks are roaring on the data with the NASDAQ climbing 2%, while the S&P 500 is 1.3% in the green, while the Dow is up 1%. Earnings reports from Home Depot and Walmart are in focus with the former climbing as it boosted its outlook for the year amid ongoing demand for home-improvement supplies, and the latter cutting profit forecasts due to rising costs (including labor)