Bond Market Update

Morning Gains Trimmed

• U.S. Treasuries have backpedaled from their best levels of the day with the 2-yr note returning to little changed while longer tenors remain in positive territory, though not by much. Today's higher start briefly pressured the 5-yr yield back below its 200-day moving average (4.023%), but the market found resistance shortly after the start. Barring significant late volatility, the Treasury complex is on course for a lower finish to the week with yields rising between six and ten basis points across the curve.
• Yield Check:
  • 2-yr: +1 bp to 3.98%
  • 3-yr: -1 bp to 3.95%
  • 5-yr: -2 bps to 4.06%
  • 10-yr: -2 bps to 4.44%
  • 30-yr: -2 bps to 4.90%