Bond Market Update

Long End Maintains Lead

• U.S. Treasuries have dipped from their best levels of the morning, though even with the slip to lows, 10s and 30s remain firmly higher while the 2-yr note remains behind, holding a modest loss. Treasuries spent the first hour of trade in a steady advance, but they moved lower after the flash S&P Global U.S. Manufacturing PMI for April hit 50.7, up from 50.2 in March, reflecting an accelerating expansion. Meanwhile, flash S&P Global U.S. Services PMI (51.4) decelerated from its March reading (54.4), but it remained in expansionary territory. Separately, Bloomberg reported not long ago that President Trump is thinking about lowering the tariff rate range on imports from China to 50-65% as a show of goodwill.
• Yield Check:
  • 2-yr: +2 bps to 3.83%
  • 3-yr: +3 bps to 3.84%
  • 5-yr: -2 bps to 3.96%
  • 10-yr: -8 bps to 4.31%
  • 30-yr: -12 bps to 4.76%