Bond Market Update

Pressure Persists

• U.S. Treasuries trade on their lows after adding to their early losses. Shorter tenors lagged at the start, leading the early weakness, but losses across the complex have now been sharp enough to send yields on 10s and shorter tenors to fresh highs for the year while the 30-yr yield is within three basis points of its high from late January (4.947%). Equities are off to a lower start with the S&P 500 (-1.0%) widening its March loss to 4.9% while the Dow (-0.6%) outperforms today, but is still down nearly 7.0% for the month. As for crude oil, it continues holding just north of $96/bbl, showing a modest gain for the day.
• Yield Check:
  • 2-yr: +9 bps to 3.92%
  • 3-yr: +10 bps to 3.93%
  • 5-yr: +9 bps to 4.01%
  • 10-yr: +9 bps to 4.37%
  • 30-yr: +7 bps to 4.92%