Bond Market Update

Longer Tenors Set Fresh Lows

• Recent action saw the 10-yr note and the long bond reach fresh lows while shorter tenors are staying a bit above their worst levels of the day, though they too have had to contend with some late-morning pressure. Today's action makes for a continuation of a volatile week that has seen multiple intraday reversals as the market seeks support after an October sell off. Interestingly, equities are hanging onto the bulk of today's gains even with the renewed weakness in Treasuries. Given their current levels, the 2-yr yield is on track to end the week with a seven-basis point increase while the 10-yr yield is currently up eleven basis points since last Friday's settlement.
• Yield Check:
  • 2-yr: +1 bp to 4.17%
  • 3-yr: +2 bps to 4.15%
  • 5-yr: +3 bps to 4.19%
  • 10-yr: +6 bps to 4.34%
  • 30-yr: +7 bps to 4.55%