Bond Market Update

Not in a rush

• Stocks have opened and have started the session on a mixed note with some weakness in the mega-cap space weighing.
• Treasuries have stuck to fairly tight trading ranges, although there has been a slight upward bias from yesterday's closing levels.
• Dallas Fed President Logan (non-FOMC voter) in a speech today said policy rate is headed down rather than up, but that FOMC should not rush to reduce the fed funds target to a "normal" or "neutral" level but rather should proceed gradually.
• Front of the curve a little more responsive to the Logan remarks, as 2-yr note yield ratcheted up to 3.99% in their wake.
• Yield check:
  • 2-yr: +1 bp to 3.99%
  • 3-yr: +1 bp to 3.90%
  • 5-yr: +2 bps to 3.88%
  • 10-yr: +2 bps to 4.05%
  • 30-yr: +1 bp to 4.33%