Bond Market Update

Short End Turns Negative

• U.S. Treasuries have continued their reversal from fresh highs for the year that were notched at the outset of today's cash session. The opening rally, which had the 10-yr yield down more than 60 basis points over the past week and a half, has been reversed steadily, returning the 10-yr yield to little changed for the day while the 2-yr yield is now up three basis points after being down 22 basis points at the start of the cash session. Equities have recovered some of their losses, but the S&P 500 is still down 2.6% while the Russell 2000 remains lower by 3.2%.
• Yield Check:
  • 2-yr: +3 bps to 3.90%
  • 3-yr: +4 bps to 3.74%
  • 5-yr: +3 bps to 3.64%
  • 10-yr: UNCH at 3.80%
  • 30-yr: -3 bps to 4.08%