Bond Market Update

 Early Gains Maintained

• U.S. Treasuries continue trading near their opening levels after a sideways start to the Friday session. The market attempted some backtracking from initial highs during the past couple hours, but it quickly found support. This puts the 10-yr yield just above its low from Wednesday (4.261%) after a busy week that saw the benchmark yield rise by eight basis points, followed by a 15-basis point drop. The market is holding just below highs in immediate reaction to the final reading of the University of Michigan's Consumer Sentiment for April (52.2; Briefing.com consensus 48.5; prior 50.8), which showed an upward revision from the preliminary reading. Equities are off to a modestly lower start with the S&P 500 (-0.3%) narrowing this week's gain to 3.5%.
• Yield Check:
  • 2-yr: +1 bp to 3.80%
  • 3-yr: UNCH at 3.79%
  • 5-yr: -1 bp to 3.91%
  • 10-yr: -3 bps to 4.28%
  • 30-yr: -4 bps to 4.73%