Bond Market Update

Longer Tenors Maintain Lead

• U.S. Treasuries have returned to their best levels that were reached during the opening hour of action. The overall trading range has remained narrow with longer tenors maintaining their slight lead. Today's subdued showing comes amid welcome news that the Secured Overnight Financing Rate dipped to 4.19% from 4.30% on Friday, returning to levels seen at the beginning of last week. Equities have built on their gains with the S&P 500 now up 1.0%.
• Yield Check:
  • 2-yr: UNCH at 3.46%
  • 3-yr: UNCH at 3.47%
  • 5-yr: -1 bp to 3.59%
  • 10-yr: -1 bp to 4.00%
  • 30-yr: -2 bps to 4.59%