Bond Market Update

Early Gains Maintained

• U.S. Treasuries remain near their opening highs after spending the first 90 minutes of action in a sideways range. The market slipped from its starting levels immediately after the cash start, but a swift bounce followed the release of a June Housing Starts/Building Permits report, even though that report beat expectations. The belly led out of the gate before the short end caught up to the early strength. The 5-yr yield has slipped back below its 50-day moving average (3.992%) while the 2-yr yield is dipping to a one-week low. Equities are off to a slightly higher start with the S&P 500 (+0.1%) trailing the Nasdaq (+0.2%).
• Yield Check:
  • 2-yr: -5 bps to 3.87%
  • 3-yr: -5 bps to 3.84%
  • 5-yr: -5 bps to 3.96%
  • 10-yr: -4 bps to 4.43%
  • 30-yr: -3 bps to 4.99%