Bond Market Update

Early Gains Padded

• U.S. Treasuries trade on their highs after extending their opening gains. The market followed its higher start with some additional buying in early trade, sending yields on the 10-yr note and shorter tenors to fresh lows for the week while the 30-yr yield is on the verge of slipping past this week's low of its own. Rate cut expectations have continued building with the fed funds futures market now all but certain that a 25-basis point rate cut will be announced on September 17. Equities are off to a higher start with the S&P 500 (+0.4%) and Nasdaq (+0.3%) continuing their push into record territory.
• Yield Check:
  • 2-yr: -5 bps to 3.68%
  • 3-yr: -6 bps to 3.65%
  • 5-yr: -6 bps to 3.77%
  • 10-yr: -6 bps to 4.24%
  • 30-yr: -5 bps to 4.83%