Bond Market Update

Opening Losses Reversed

• U.S. Treasuries have recovered from their lower start, approaching highs from Friday. Treasuries added to their losses during the initial hour of action, but they bounced as the stock market opened to some early selling pressure. Treasuries have benefited from the opening weakness in stocks with yields revisiting their lows from Friday afternoon. The 2-yr yield is flat at 4.19% ahead of the upcoming $69 bln 2-yr note auction.
• Yield Check:
  • 2-yr: UNCH at 4.19%
  • 3-yr: -1 bp to 4.19%
  • 5-yr: -1 bp to 4.25%
  • 10-yr: -1 bp to 4.41%
  • 30-yr: -1 bp to 4.66%