Bond Market Update

Rally Sustained

• U.S. Treasuries trade just below their highs, seeing a persistent bid after today's upbeat start. The market saw a brief pullback attempt in morning action, but Treasuries bounced at their opening levels, cruising to fresh highs in recent trade. That said, the pace of the action has slowed, with just a couple hours remaining in the final session of February. Longer tenors ended yesterday at their best levels of the year, but with today's bid, only the 2-yr note remains below its 2026 intraday high from February 17, and not by much. The 2-yr yield is currently down 14 basis points for the month while the 10-yr yield is down 27 basis points from its January settlement.
• Yield Check:
  • 2-yr: -5 bps to 3.40%
  • 3-yr: -6 bps to 3.40%
  • 5-yr: -6 bps to 3.53%
  • 10-yr: -5 bps to 3.97%
  • 30-yr: -3 bps to 4.64%