Bond Market Update

Morning Losses Narrowed

• U.S. Treasuries have risen off their morning lows, though even with the bounce, the market remains in negative territory. Today's session marks the end of a month that saw aggressive selling across the curve with little respite. The 2-yr yield has jumped 52 basis points this month while the 10-yr yield is currently up 49 basis points for the month. The market is set to enter the new month pricing in a 94.6% implied likelihood of a 25-basis point cut on November 7 after seeing a 34.7% implied likelihood of a 50-basis point decrease at the end of September.
• Yield Check:
  • 2-yr: +2 bps to 4.17%
  • 3-yr: +1 bp to 4.13%
  • 5-yr: +3 bps to 4.16%
  • 10-yr: +2 bps to 4.29%
  • 30-yr: +1 bp to 4.49%