Bond Market Update

Early Losses Maintained

• U.S. Treasuries continue trading near their starting levels, keeping yields just below Friday's highs. The market attempted a bounce off lows about an hour after the start, with the long bond leading a bounce that briefly lifted all tenors above their starting levels. However, the past 15 minutes have seen a return to morning lows just as the market received some headlines from the G7 call. French Finance Minister Lescure, who heads France's G7 presidency for 2026, said that members are ready to use strategic oil reserves to stabilize the market, but they have not decided to deploy these reserves just yet. Equities are off to a lower start with the S&P 500 (-1.3%) falling to its lowest level since late November.
• Yield Check:
  • 2-yr: +4 bps to 3.60%
  • 3-yr: +4 bps to 3.62%
  • 5-yr: +4 bps to 3.75%
  • 10-yr: +3 bps to 4.16%
  • 30-yr: +2 bps to 4.77%