Bond Market Update

Pressure Persists

• U.S. Treasuries trade just above lows that were reached during the past hour. The first half of the first session of March has been a unidirectional affair after February ended with yields at their lowest closing levels of the year. The selling in Treasuries comes amid elevated uncertainty surrounding global shipping routes after weekend strikes against Iran launched a campaign that is expected to last a few weeks. Crude oil hit $75/bbl in overnight trade, but it has given back some of that gain, trading near $71/bbl at this juncture. Equities faced some early pressure but the S&P 500 (+0.1%) now holds a slim gain.
• Yield Check:
  • 2-yr: +11 bps to 3.49%
  • 3-yr: +12 bps to 3.50%
  • 5-yr: +11 bp to 3.63%
  • 10-yr: +9 bps to 4.05%
  • 30-yr: +7 bps to 4.70%