Bond Market Update

Sitting Near Lows

• U.S. Treasuries remain near lows that were reached in late morning trade with shorter tenors holding losses while 10s and 30s are hanging onto slim gains. The pace of today's action slowed considerably after Treasuries reached lows, resulting in sideways trade over the past hour. Other markets have also been calm in recent trade, leaving equity indices with the bulk of today's gains while crude oil remains just below $98/bbl. Barring a volatile finish in Treasuries, the 5-yr note and shorter tenors are on track to record losses for the week with the 2-yr yield up five basis points since last Friday while 10s and 30s are seeking a higher finish.
• Yield Check:
  • 2-yr: +4 bps to 4.13%
  • 3-yr: +4 bps to 4.19%
  • 5-yr: +2 bps to 4.27%
  • 10-yr: -1 bp to 4.58%
  • 30-yr: -3 bps to 5.08%