Bond Market Update

On Recovery Path

• Treasuries have shown some welcome improvement from their early-morning highs that followed shortly after the news that the House had passed the reconciliation bill in a 215-214 party-line vote.
• The 10-yr note yield climbed as high as 4.63%, while the 30-yr bond yield hit 5.15%. They currently trade at 4.56% and 5.07%, respectively. 
• A disappointing existing home sales report for April, which produced the weakest annualized pace of sales for the month of April (4.00 mln) since 2009, has helped in the recovery effort along with some short-covering activity.
• Stocks are little changed, although pockets of strength in the mega-cap space have provided some cover for the major indices in the face of negative breadth figures at the NYSE and an A-D line at the Nasdaq that is no better than even at the moment.
• Yield check:
  • 2-yr: -1 bp to 4.00%
  • 3-yr: -3 bps to 3.98%
  • 5-yr: -5 bps to 4.11%
  • 10-yr: -4 bps to 4.56%
  • 30-yr: -2 bps to 5.07%