Bond Market Update

Long End Maintains Early Strength

• U.S. Treasuries trade on their highs after rising from their starting levels with longer tenors maintaining their early show of relative strength. That outperformance makes for a change from yesterday's session when longer tenors lagged while the short end finished with a solid gain. The early rise off lows has been accompanied by a push higher in equities with the S&P 500 (+1.4%) trimming this week's loss to 1.0%. The market did not receive any data this morning, but the International Monetary Fund lowered its 2025 global growth outlook to 2.8% from 3.3% while the forecast for the U.S. was also reduced by 50 basis points to 1.8%.
• Yield Check:
  • 2-yr: +4 bps to 3.79%
  • 3-yr: +3 bps to 3.80%
  • 5-yr +1 bp to 3.97%
  • 10-yr: -2 bps to 4.39%
  • 30-yr: -4 bps to 4.87%