Bond Market Update

Early Losses Trimmed

• U.S. Treasuries trade above their opening lows, though even with the recent rebound, the entire complex remains in negative territory. The lower start lifted the 10-yr yield back above its 50-day moving average (4.344%) to its highest level since late February while the recent bid brought the 10-yr yield back toward its 50-day average. The market remains on high alert leading into today's $39 bln 10-yr note sale, which will send a signal about the current health of the Treasury market. Equities are off to a higher start with the Nasdaq (+1.3%) outpacing the S&P 500 (+0.5%).
• Yield Check:
  • 2-yr: +2 bps to 3.76%
  • 3-yr: +7 bps to 3.83%
  • 5-yr: +9 bps to 4.01%
  • 10-yr: +12 bps to 4.38%
  • 30-yr: +12 bps to 4.83%