Bond Market Update

Short End Remains Behind

• U.S. Treasuries continue trading inside a range that was established in morning trade. The long bond hovers a bit closer to its high than other tenors, though even with the outperformance, the 30-yr bond remains firmly in the red. Meanwhile, shorter tenors sit on their lows amid concerns about the near-term inflationary impact of higher fuel prices. Crude oil has seen a continued bid, rallying past its June high (78.40) toward $79.50/bbl, a level last seen in January 2025. With today's gain, oil is up $12.44, or 18.6%, already this week. Equities remain pressured with the S&P 500 down 0.9%.
• Yield Check:
  • 2-yr: +5 bps to 3.59%
  • 3-yr: +6 bps to 3.61%
  • 5-yr: +6 bps to 3.73%
  • 10-yr: +6 bps to 4.14%
  • 30-yr: +3 bps to 4.75%