Bond Market Update

Early Rally Finds Resistance

• Recent action saw a dip from highs that has sent 10s and 30s into the red while shorter tenors remain in positive territory, though they too have backtracked in recent trade. The opening rally pressured the 5-yr yield to within a striking distance of its 50-day moving average (3.674%) while the 30-yr yield briefly dipped below its 200-day moving average (4.788%), but the yields have risen back above those levels during the recent dip from highs. Even with the modest volatility, the overall tone has remained subdued, with today's biggest moves reserved for the precious metals market where gold and silver have soared to fresh record highs with silver jumping more than $4.50/ozt, or 6.4%. Palladium futures have also shown notable strength, soaring nearly $200/ozt, or 10.9%, back to $2000/ozt.
• Yield Check:
  • 2-yr: -2 bps to 3.48%
  • 3-yr: -2 bps to 3.54%
  • 5-yr: -1 bp to 3.70%
  • 10-yr: UNCH at 4.14%
  • 30-yr: +2 bps to 4.82%