Bond Market Update

Gains Defended

• U.S. Treasuries continue trading within a striking distance of their starting levels, putting the complex on track for a higher finish for the week. The market faced some light pressure after the release of an above-consensus preliminary reading of the University of Michigan's Consumer Sentiment Index for June (61.8; Briefing.com consensus 61.5) but quickly found support near its early intraday lows. Treasuries have seen very little movement over the past couple hours, leaving yields on the 10-yr note and shorter tenors at their lowest levels in a week while the 30-yr yield hovers near yesterday's low as the long bond continues this week's underperformance.
• Yield Check:
  • 2-yr: -6 bps to 3.86%
  • 3-yr: -6 bps to 3.83%
  • 5-yr: -6 bps to 3.95%
  • 10-yr: -4 bps to 4.42%
  • 30-yr: -2 bps to 4.99%