Bond Market Update

Short End Maintains Lead

• U.S. Treasuries remain mixed with shorter tenors showing strength while the long end lags. Treasuries climbed off their opening levels during the initial hour of action, rising through the release of the trade balance report for March (-$140.5 bln; Briefing.com consensus -$127.5 bln; prior -$123.2 bln), which showed a widening in the deficit as imports continued growing ahead of the implementation of tariffs. The ensuing pullback from highs pressured 10s and 30s into the red while shorter tenors are defending the bulk of their early gains. Treasury Secretary Bessent will appear at an oversight hearing on Capitol Hill at 10:00 ET, so he could offer some comments that catch the market's attention. Equities are seeing some early pressure with the S&P 500 (-0.7%) falling toward its 50-day moving average (5568).
• Yield Check:
  • 2-yr: -4 bps to 3.80%
  • 3-yr: -4 bps to 3.78%
  • 5-yr: -1 bp to 3.93%
  • 10-yr: +1 bp to 4.35%
  • 30-yr: +3 bps to 4.86%