Bond Market Update

Short End Remains Pressured

• Recent action saw the 5-yr note and shorter tenors slip to fresh lows while 10s and 30s trade a touch above their worst levels of the session. The bulk of today's action occurred after the release of the strong jobs report with the pace of the movement slowing into the afternoon. Longer tenors have been able to resist additional selling while the 2-yr note has remained on a downward path with its yield now up 20 basis points for the day. Including today's increase, the 2-yr yield is up 35 basis points for the week while the 10-yr yield is up 22 basis points since last Friday's settlement, reversing a good portion of recent steepening in the 2s10s spread, which has compressed to six basis points from 19 basis points at the end of last week.
• Yield Check:
  • 2-yr: +20 bps to 3.91%
  • 3-yr: +19 bps to 3.82%
  • 5-yr: +17 bps to 3.80%
  • 10-yr: +12 bps to 3.97%
  • 30-yr: +8 bps to 4.26%