Bond Market Update

Finding Support

• Treasuries have recovered a lot of lost ground in the cash session, having been pressured overnight by the spike in oil prices and the reticence of central banks to cut their key policy rates.
• The bulk of today's recovery can be attributed to technical buying interest, as the 10-yr note yield found support after clearing 4.30%, leading perhaps to some short-covering interest as well that benefited the entire curve.
• Politico reporter says, 'The White House will not implement a crude export ban, and told oil executives as much at this morning’s meeting with API, per an admin official who participated in the meeting'
• Yield check:
  • 2-yr: +8 bps to 3.83%
  • 3-yr: +7 bps to 3.82%
  • 5-yr: +4 bps to 3.90%
  • 10-yr: unch at 4.26%
  • 30-yr: -5 bps to 4.83%