Bond Market Update

Hovering Near Highs

• U.S. Treasuries trade on their highs after a steady rise through the morning that was sparked by dovish comments from Fed Governor Waller, who said that there is potential for a rate cut in July since tariffs should not lead to a meaningful boost to inflation. With the market pondering quicker action on the policy front, shorter tenors have been at the forefront of the rebound off opening lows with the 2-yr yield down four basis points today and down six basis points for the week. The 10-yr yield, meanwhile, is currently down five basis points from last week's settlement.
• Yield Check:
  • 2-yr: -4 bps to 3.90%
  • 3-yr: -5 bps to 3.85%
  • 5-yr: -4 bps to 3.95%
  • 10-yr: -3 bps to 4.37%
  • 30-yr: -1 bp to 4.88%