Bond Market Update

Early Volatility Subsides

• U.S. Treasuries continue trading near their flat lines, having seen very little movement since our last update. The market faced some early volatility this morning as investors received the cooler-than-expected CPI report for September, but the aftermath of the report suggests that the market was ready for precisely this type of a report. As a result, yields on 2s and 5s are flat on the day while yields on longer tenors are up just one basis point apiece. This also leaves the market on course for a largely flat finish for the week assuming no late fireworks. The 2-yr yield is up two basis points for the week while the 10-yr yield is down one basis point from last Friday's settlement.
• Yield Check:
  • 2-yr: UNCH at 3.48%
  • 3-yr: -1 bp to 3.48%
  • 5-yr: UNCH at 3.60%
  • 10-yr: +1 bp to 4.00%
  • 30-yr: +1 bp to 4.58%