Bond Market Update

Belly Takes Lead

• U.S. Treasuries have maintained today's bid, reaching fresh highs during the past hour of action. Shorter tenors were at the forefront of the buying at the start of the session, but the belly eventually took the lead, and it remains ahead at this juncture. The buying in Treasuries and the resulting dip in yields has been an encouraging factor for equities, though even with today's decrease, Treasury yields are on course for a higher finish to the week with the 2-yr yield up six basis points since last Friday's settlement while the 10-yr yield is up ten basis points for the week.
• Yield Check:
  • 2-yr: -2 bps to 4.30%
  • 3-yr: -4 bps to 4.30%
  • 5-yr: -7 bps to 4.36%
  • 10-yr: -7 bps to 4.50%
  • 30-yr: -4 bps to 4.70%