Bond Market Update

Short End Ahead

• U.S. Treasuries hover just above their flat lines with shorter tenors showing relative strength. Treasuries climbed during the first few minutes of action amid some renewed speculation about positive developments in negotiations with Iran, though the market has not gotten too carried away by this. There was a report that the U.S. might suspend oil sanctions on Iran but more meaningful progress has remained elusive. The opening push found resistance near Friday's starting levels, followed by some recent backtracking, which has the long bond right below its unchanged level while shorter tenors are a bit ahead. Equities started in mixed fashion with the S&P 500 (+0.2%) holding a slim early gain.
• Yield Check:
  • 2-yr: -2 bps to 4.06%
  • 3-yr: -2 bps to 4.13%
  • 5-yr: -1 bp to 4.25%
  • 10-yr: UNCH at 4.60%
  • 30-yr: UNCH at 5.13%