Bond Market Update

Gains Maintained

• U.S. Treasuries hover just below high that were reached in reaction to Fed Chairman Powell's speech from the Jackson Hole conference, which reassured the market about the likelihood of a September rate cut just days after some FOMC policymakers expressed resistance to the need for a cut in the immediate term. Today's rally has been paced by the front end, though yields on all tenors have slid to one-week lows. Barring some late volatility, the 10-yr yield is on track record a seven-basis point loss for the week while the 2-yr yield is down eight basis points from last week's settlement.
• Yield Check:
  • 2-yr: -11 bps to 3.68%
  • 3-yr: -10 bps to 3.64%
  • 5-yr: -10 bps to 3.76%
  • 10-yr: -7 bps to 4.26%
  • 30-yr: -4 bps to 4.88%