Bond Market Update

Staying in the Red

• U.S. Treasuries hover a bit above their morning lows, but longer tenors are still well below their starting levels. The 2-yr note has shown some more intraday resilience, but that is being masked by the fact that its yield is still up six basis points for the day, on track for its highest settlement since late July. The 2-yr yield has increased by 16 basis points this week while the 10-yr yield is up eight basis points for the week, also back at levels from late July as the market prices in inflationary pressures resulting from the ongoing jump in energy prices. Equities remain in the red with the S&P 500 (-0.8%) on course to lose 1.2% for the week.
• Yield Check:
  • 2-yr: +6 bps to 3.89%
  • 3-yr: +7 bps to 3.90%
  • 5-yr: +8 bps to 4.00%
  • 10-yr: +9 bps to 4.37%
  • 30-yr: +9 bps to 4.94%