Bond Market Update

Losses Widened

• U.S. Treasuries have extended their losses in recent trade, though the pace of the selling has slowed since this morning's retreat from opening levels. The weakness comes despite another poor outing from equities. The market heard from a couple of Fed officials who pushed back against the idea of a September rate cut today, though investors are eagerly awaiting tomorrow's speech from Fed Chairman Powell at 10:00 ET. Mr. Powell will deliver the keynote at this year's Jackson Hole Economic Symposium and his remarks will be watched closely for signs suggesting that the central bank is ready to announce a rate cut on September 17. The implied likelihood of a September rate cut has receded to 71.5% from 94.6% just two weeks ago.
• Yield Check:
  • 2-yr: +6 bps to 3.80%
  • 3-yr: +5 bps to 3.75%
  • 5-yr: +5 bps to 3.86%
  • 10-yr: +4 bps to 4.34%
  • 30-yr: +3 bps to 4.94%