Bond Market Update

Bounce Extended

• U.S. Treasuries have extended their rebound off morning lows with the 2-yr note rallying strongly after underperforming earlier this week. Thanks to today's show of strength, the 2-yr yield is now up just three basis points for the week while the 30-yr yield is now down one basis point since last Friday. This has masked significant volatility over the past few days that saw the 10-yr yield bounce inside a 17-basis point range as the market remained sensitive to speculation about the course of the conflict with Iran. Similarly, equities have been weighed down by concerns about inflation that is likely to result from the recent jump in energy prices. WTI crude is up nearly $4.00/bbl at $98.42/bbl today, reclaiming the remainder of this week's loss.
• Yield Check:
  • 2-yr: -6 bps to 3.92%
  • 3-yr: -5 bps to 3.94%
  • 5-yr: -3 bps to 4.07%
  • 10-yr: UNCH at 4.42%
  • 30-yr: +2 bps to 4.95%