Bond Market Update

Sideways Trade Continues

• U.S. Treasuries have inched back above their starting levels during the past hour, though the overall trading range has remained narrow. Shorter tenors underperformed out of the gate and they remain behind while the long bond holds just a slim loss with its yield up one basis point for the day. Intraday action has been largely uneventful, though the recent uptick to highs took place as crude oil backed down from its best level of the day, dipping back toward $100/bbl after marking a high just above $102.50/bbl. As for equities, the S&P 500 (-0.4%) remains in the red, trading flat for the week, though it is still up nearly 3.0% since the end of April.
• Yield Check:
  • 2-yr: +6 bps to 4.10%
  • 3-yr: +5 bps to 4.16%
  • 5-yr: +5 bps to 4.27%
  • 10-yr: +3 bps to 4.60%
  • 30-yr: +1 bp to 5.12%